The sharp drawdown on the U.S. stock market was picking up steam on Thursday, putting the S&P 500 on pace to close in correction territory.

It started with tariffs, but the trade war is quickly escalating beyond import taxes into a broader tit-for-tat battle.

President Donald Trump threatened Thursday to impose a 200% tariff on alcoholic beverages imported from the European Union after the EU’s executive body unveiled retaliatory tariffs. The European Commission said Wednesday that it would impose import taxes on $28 billion worth of U.