EU officials given go-ahead to negotiate with Trump on tariffs

Officials from the European Union have provisionally agreed to opening formal trade talks with the US in a bid to cool an escalating spat between two of the world's largest economies.

A meeting of ambassadors today gave the EU Commission clearance to negotiate with its counterparts in the US, sources told Reuters. The commission was granted mandates to cut tariffs on industrial goods and to make it easier for companies to show their products comply with EU and US standards.

Read more: US threatens tariffs on $11bn of EU goods

The proposals will still need to be put to ministers for approval although they usually club through such decisions without debate. Agriculture ministers are set to meet in Brussels on Monday.

Last year US President Donald Trump agreed to hold off on punitive sanctions against the EU.

Read more: Businesses voice anger over plans to slash tariffs in no-deal Brexit

However, the US still levies charges on European steel and aluminium, and earlier this week Trump threatened to hit the EU with more tariffs on $11bn worth of EU products.

The US claims that EU subsidies for Airbus unfairly benefit the European aircraft maker. The EU alleges the same about US help for Boeing.