Merchants worried that a trade war could wreak financial havoc in a region that has a robust business exporting the world’s finest bubbly to the United States.

President Trump on Thursday threatened to impose tariffs on wines, Champagnes and other alcoholic products imported to the U.S. from France and other European countries in response to raised tariffs the European Union placed on American whiskey.

President Trump on Thursday announced another salvo in a fast-escalating trade war with the European Union, saying he would impose a 200% tariff on U.S. imports of wine, Champagne and other alcoholic beverages from the 27-nation bloc.