New trade tariffs could lead to vicious circle of trade war, ECB warns

Fresh tariffs could be detrimental to global growth and lead retaliation and a vicious circle of trade war, European Central Bank Vice President Luis de Guindos said after Donald Trump won the U.S. presidential election promising new trade barriers.

"Tariffs, trade barriers, protectionism is going to be detrimental to the global economy," de Guindos said at a conference in London. "I hope the decisions taken do not give rise to any sort of trade war.

"If you impose a tariff, you have to bear in mind that the other party is going to react, and it’s going to retaliate, and that could give rise to vicious circle of in terms of inflation, tariffs, which could be the worst possible result and outcome," he said.