U.S. President Donald Trump on Thursday threatened to slap a 200% tariff on wine, cognac and other alcohol imports from Europe, opening a new front in a global trade war that has roiled financial markets and raised recession fears.

"Just say thank you," Treasury Secretary Howard Lutnick told CBS News' chief White House correspondent Nancy Cordes during an interview that touched on everything from tariffs to Elon Musk and income tax.

Calling bad news a temporary phenomenon didn’t work out well for Biden and it won’t for Trump, former Treasury Secretary Larry Summers said.

Key Takeaways Treasury Secretary Scott Bessent said the administration's goal was to have a "smooth transition" to an economy with less federal spending.Last week, Bessent stoked fears of a recession by warning of a period of "detox" from high government spending as Trump slashed programs and workers.

The last two recessions before the pandemic show that the economic pain of a recession can linger for many years. This was especially the case during and after the financial crisis from 2007 to 2009,