The Dow lost more than 500 points Thursday and the Nasdaq dropped more than 300 as investors reacted to President Trump's threat to impose a 200% tariff on European Union exports of wine, champagne, and other alcoholic beverages.

European sectors about to be caught in the whirlwind of trade tensions between the U.S. and the EU include automotives — already being rocked by the fresh duties between the U.S., Canada and Mexico — metals,