New Delhi, March 14 -- The ongoing sell-off in the U.S. markets intensified further on Thursday, sending the S&P 500 into correction territory after U.S. President Donald Trump threatened to impose 200% tariffs on wine, champagne, and other alcoholic products from France and other European Union countries in retaliation for the bloc's 50% tariff on whiskey.

Trump's threat came in response to a European Union plan to impose tariffs on American whiskey and other products next month-which itself is a reaction to Trump's 25% tariffs on steel and aluminum imports that took effect on Wednesday.

The escalating trade tensions, which could potentially lead to a slowdown in the U.S. economy, have sent the S&P 500 index tumbling another 1.4% on Th...