Wall Street’s sell-off hit a new low Thursday after President Donald Trump’s escalating trade war dragged the S&P 500 more than 10% below its record, which was set just last month.

A 10% drop is a big enough deal that professional investors have a name for it — a “correction” — and the S&P 500’s 1.4% slide on Thursday sent the index to its first since 2023. The losses came after Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol. Not even a double-shot of good news on the U.S. economy could stop the bleeding.

The Dow Jones Industrial Average dropped 537 points, or 1.3% Thursday, and the Nasdaq composite fell 2%.

“The question for markets is whether good news on the inflation front can make itself heard above the noise of the ever-changing tariff story,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

Escalation in the trade war took the form of a threat by President Trump to impose a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with its planned tariffs on whiskey.

The EU’s import tax, which was unveiled in response to Trump’s 25% steel and aluminum tariffs, is expected to go into effect on April 1, just ahead of separate reciprocal tariffs that Trump plans to place on the EU.

“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” Trump wrote. “This will be great for the Wine and Champagne businesses in the U.S.”

The swings for stocks have been coming not just day to day but also hour to hour. The Dow hurtled between a slight gain and a drop of 689 points during Thursday’s trading.