The U.S. dollar was broadly firmer on Friday with the euro pulling further away from a five-month peak as markets grappled with escalating global trade tensions and risks of a sharp economic downturn.

President Trump has again turned to tariffs as a weapon in international trade disputes, this time threatening a hefty 200 percent levy on wine, champagne, and other alcoholic products from the

The president in a social media post on Thursday said that he would move forward with the import duties if Brussels follows through with a tax on American whiskey exports.

The U.S. dollar edged higher against major currencies including the yen and the euro on Wednesday as data showing a slowdown in inflation was eclipsed by worries about potential inflationary implications of President Donald Trump's tariffs.

Tariffs have historically triggered market volatility. When the Trump administration announced tariffs on China, markets dropped sharply before making a near-total recovery that same day. Investors should focus on long-term goals and consult their financial advisors before making portfolio changes.

The U.S. trade deficit, which remains sizable with key partners like China, Mexico, and Europe, underscores the stakes in ongoing trade disputes.

The U.S. dollar strengthened on Friday as escalating global trade tensions and economic slowdown fears weighed on markets. The euro slipped to $1.0847, retreating further from Tuesdays five-month peak,