The trade war is a “zero-sum game”, warns the Spanish prime minister, as Trump threatens the EU with tariffs

A trade war is not in the interest of the European Union or the United States, the Spanish prime minister told CNBC on Wednesday.

“We share a strong transatlantic bond… our economies are very interconnected and I believe that a trade war is not in the interest (of either party), neither of the United States nor of the European Union,” Pedro Sánchez told Steve Sedgwick of CNBC. On the sidelines of the World Economic Forum in Davos, Switzerland.

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

Since his inauguration on Monday, President Donald Trump has repeated his threat to impose tariffs on EU products entering the United States, telling reporters that the EU was “very, very bad to us.” “The only way… you will get justice.”

On Tuesday, Trump said his administration was discussing imposing an additional tax. 10% tariff on goods imported from China, starting in February. He also warned that Mexico and Canada could also be subject to import tariffs.

The European Union’s economic commissioner told CNBC that the bloc would respond to any tariffs imposed by the United States.

“If it is necessary to defend our economic interests, we will respond proportionately,” Valdis Dombrovskis told CNBC’s Steve Sedgwick.

“We are willing to defend our values ​​and also our interests and rights if necessary,” he added.

European officials were talking to their American counterparts to find a “pragmatic” solution to the tariff dispute, Dombrovskis emphasized, noting that global growth could be affected if the economic relationship between the two nations were damaged.

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This is a developing story; Please check back for more updates.