DONALD Trump is threatening to impose 200 per cent tariffs on wine, champagne and spirits imports from the EU as a tit-for-tat trade war escalated.

The US President insisted that if a “nasty” 50 per cent Brussels levy on American whiskey was implemented he would press ahead with the surcharge.

The proposed extra costs on whiskey, due to come in on April 1, came after America pressed ahead with steel and aluminium tariffs.

Trump said: “This will be great for the wine and champagne businesses in the US.”

Irish leader Micheal Martin, who held talks with Trump on Wednesday, said: “Tariffs increase inflation and are not good for the consumer and are not good for business, and that is our view.

“But I do believe there will be some distance to go yet.”

Speaking in Washington DC on Thursday, he said: “We’ll be endeavouring to protect Irish interests in terms of specific Irish products and Irish sectors.”

Meanwhile, Britain will keep “all options on the table” in response to President Trump imposing tariffs on steel and aluminium, Sir Keir Starmer vowed today.

The PM revealed he was “disappointed” our close ally had imposed the 25 per cent levy on the goods.

But so far the UK has refused to hit back with ministers saying a trade agreement between the two countries is under discussion.

The PM said: “On the question of tariffs, like everybody else I’m disappointed to see global tariffs in relation to steel and aluminium. But we will take a pragmatic approach.

“We are…negotiating an economic deal which covers and will include tariffs if we succeed but we will keep all options on the table.”