U.S. stock indexes fell on Thursday following President Donald Trump's threat to impose additional tariffs on imports from the European Union, although data showing cooling inflation offered some respite.

By Andrea Shalal, David Lawder and Jarrett Renshaw WASHINGTON (Reuters) -Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S.

European markets respond to escalating tariff anxieties as Canada and the EU announced countermeasures to the US’ 25% steel and aluminium tariffs. View on euronews

President Trump says he'll slap 200% tariffs on wine and other alcohol from Europe if the European Union doesn't nix a planned 50% retaliatory tariff on American whiskey. The EU announced counter tariffs on Wednesday on $28 billion worth of US goods in response to Trump's "unjustified" 25% tariffs on steel and aluminum imports.

If a diplomatic solution isn't reached soon, the trade war between the U.S. and the EU could escalate, impacting international trade and global financial stability.