A full-scale global trade war would hurt the United States more and could give Europe a new impetus towards unity, European Central Bank (ECB) President Christine Lagarde told the BBC today and was quoted by Reuters, BTA reports.
If a real trade war takes place, "it would have severe consequences for global (economic) growth and for prices, especially in the United States", Lagarde said.
On the other hand, however, it would contribute to a positive side effect and give a boost to European unity, Lagarde claims.
"Do you know what is happening now? European energy is being stirred. "This is a big wake-up call for Europe. Maybe this is a European moment again," she said.
The European Commission and Germany, the bloc's largest economy, have already announced increased spending on rearmament and infrastructure investment, ending years of reluctance to spend more in these sectors, Lagarde added.
This "collective awakening" appears to include Britain, which left the European Union after contributing to Europe's security efforts, she said, adding that many of the EU's large-scale efforts to deepen unity had stalled for much of the past decade.
Meanwhile, a European Union spokesman said on Monday that the bloc's trade relationship with the United States was the strongest in the world and needed to be built on, not weakened.
"Threats don't help," the spokesman added, referring to Trump's threats to impose higher tariffs on EU goods imported into the United States, Reuters reported.