* Lagarde says US import tariffs could hit global growth
* Retaliation could lead crimp global commerce
* Lagarde says some countries not respecting WTO rules (Adds French Europe minister)
By Geert De Clercq
PARIS, March 7 (Reuters) - No one emerges victorious from atrade war, International Monetary Fund chief Christine Lagardesaid on Wednesday, warning that the economic impact of U.S.import tariffs would be serious if other countries respond withtheir own barriers.
On Tuesday, U.S. President Donald Trump reiterated his planto slap big tariffs on steel and aluminum imports, warning theEuropean Union it would get hit with a "big tax" for failing totreat the United States well over trade matters. macro-economic impact would be serious, not only if theUnited States took action, but especially if other countrieswere to retaliate, notably those who would be most affected,such as Canada, Europe, and Germany in particular," Lagarde saidon French radio RTL.
Trump's comments have sparked cries of foul play from U.S.trading partners and warnings from U.S. lawmakers and businessesof the potential for a tit-for-tat trade war that could hurt theU.S. economy. Trump has said the United States could win such awar, since it was running such a large trade deficit.
"In a so-called trade war, driven by reciprocal increases ofimport tariffs, nobody wins, one generally finds losers on bothsides," Lagarde said, adding that she hoped that Trump would notimplement the tariffs threat.
Trump's top economic advisor Gary Cohn, seen as a voice forWall Street in the White House, said he would resign after helost the fight against Trump over the tariffs. EU executive will discuss potential retaliation measureson Wednesday. It has drawn up a list of U.S. products frombourbon to Harley Davidson motorbikes on which to apply tariffsif Trump follows imposes tariffs. European Affairs Minister Nathalie Loiseau the EUwould raise the tariff threat with the WTO.
"We are not happy about this," Loiseau told Radio Classique."Europe can no longer afford to be naive and passive faced withthis aggressive protectionism," she said.
CHOKE ON WORLD GROWTH
Lagarde indicated that Trump might have a case forthreatening tariffs, saying there were "a few good reasons" toprotest against the current situation.
"There are some countries in the world that do not respectthe World Trade Organisation agreements, and which imposetechnology transfers. China is a case in point but it is not theonly country with such practices," she said.
But she said international trade was an engine for growth,innovation and competitiveness and cautioned that any threat totrade was risky for world growth.
"If world trade were jeopardised by such measures (tariffs),they would become a vector for lower growth and a slowdown ofcommerce. The impact on growth would be a formidable," she said.
Lagarde said she had the impression that the White House hadnot thought through the risks of retaliation.
"It looks like two camps have fought over whether or not toimplement such measures and that one of the camps won the upperhand," she said.
Lagarde, a former French finance minister, also said growingincome inequality was a barrier to sustainable growth.