Washington | President Donald Trump has escalated his trade war with the European Union, threatening 200 per cent tariffs on European wine and Champagne that have deepened anxiety among businesses and consumers on both sides of the Atlantic.

Trump’s announcement, in which he called the EU “hostile and abusive”, came a day after the bloc’s leaders unveiled plans to retaliate against a batch of US tariffs that took effect this week by imposing 50 per cent tariffs on imports of US whiskey and several other American products.