US president Donald Trump has threatened to impose billions of dollars' worth of tariffs on goods coming to the country from the European Union in a move that could seriously damage world trade.

The announcement came this week as part of a long-running dispute between the US and the EU over their state subsidy support for aviation firms Airbus and Boeing, with Mr Trump saying on Twitter that he would be adding $11 billion (€9.8 billion) in levies to EU products.

A 14-page list of items that could attract a higher tariff was subsequently released, which included everything from wine and champagne to oysters and cheese.

"The EU has taken advantage of the US on trade for many years. It will soon stop!" Mr Trump added.

Since the comments, the EU has begun preparing to retaliate over Boeing subsidies, a spokesperson said.

The news comes after Washington already applied tariffs of ten per cent on billions of dollars' worth of Chinese imports, although it is thought these may be lifted when the two nations resume their talks in the weeks ahead.