U.S. stock markets suffered another day of losses on Thursday after President Donald Trump escalated his tariff threats.

President Trump announced Thursday morning that he would impose a 200% tariff on all alcoholic products from European Union nations after a back-and-forth with the EU.

The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell more than 1% on the day. The Dow dropped more than 500 points to close at 40,849, while the Nasdaq declined 345 points.

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The S&P 500 also saw a significant decline, sliding nearly 1.4% and pushing the index into its first market correction since 2023. That term is reserved for when an index falls 10% or more from a recent high.

Over the past five days, the Dow and Nasdaq have each lost more than 3.5%, as uncertainty over U.S. economic policy continues to weigh on investors. In recent days, President Trump has threatened tariffs on multiple countries — at times walking back those threats.

“It’s basically like a game of chicken that President Trump and America are playing with these other countries,” said Aaron Cirksena, founder of MDRN Capital. “Who’s going to blink first? Who’s going to make a concession first?”

President Trump has warned of an economic "transition period" but insists that Americans will ultimately benefit from his trade and economic agenda.

However, a new CNN poll shows that 56% of respondents disapprove of his handling of the economy.