Spanish PM warns trade war is a ‘zero-sum game’ as Trump threatens EU with tariffs

The Spanish Prime Minister told CNBC on Wednesday that a trade war is not in the interest of the European Union or the United States.

“We share a strong transatlantic bond,” Pedro Sanchez told CNBC’s Steve Sedgwick. “Our economies are very interconnected and I think a trade war is not in the interest of (either party), neither in the interest of the United States nor in the interest of the European Union.” This was on the sidelines of the World Economic Forum in Davos, Switzerland.

“The trade war is a kind of zero-sum gain,” he added. “We need to focus on how to strengthen our transatlantic relationship, which is now more important than ever.”

Since his inauguration on Monday, President Donald Trump has repeated his threat to impose tariffs on EU goods entering the United States, telling reporters that the EU has been “very bad for us. So they’re going to get tariffs. It’s critical.” “The only way…you’ll get justice.”

Trump said on Tuesday that his administration was discussing imposing an additional resolution 10% tariff on goods Imported from China starting in February. He also warned that Mexico and Canada may also be targeted for import duties.

The EU Commissioner for the Economy told CNBC that the bloc will respond to any tariffs imposed by the United States.

“If there is a need to defend our economic interests, we will respond in a proportionate manner,” Valdis Dombrovskis told CNBC’s Steve Sedgwick.

He added, “We are ready to defend our values, as well as our interests and rights, if that becomes necessary.”

Dombrovskis stressed that European officials are talking with their American counterparts to find a “practical” solution to discuss customs tariffs, noting that global growth may suffer if the economic relationship between the two countries is damaged.

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This is a developing story, please check back for more updates.