The S&P 500, a key US stock market index, closed in correction territory on Thursday as the volatility of Donald Trump’s trade wars rattled investors.
The index closed more than 10% down from its 19 February peak as Wall Street approaches the end of a second week of pressure.
The technology-focused Nasdaq Composite also closed in correction last Thursday, while the Dow is over 9% down from its peak in December.
On Thursday, after Canadian and EU leaders hit back on American tariffs on steel and aluminum imports, the US president threatened a new 200% tariff on European alcohol, in response to a 50% EU tariff on American bourbon imports.
“This will be great for the Wine and Champagne businesses in the US,” Trump wrote on Truth Social.
It was the latest in the back-and-forth between the US and its key trading partners after a 25% US tariff on all steel and aluminum imports went into effect Wednesday. In response, Canada and the EU have put tariffs on American exports worth a total of over $40bn goods.
