A Bradford-based corporation is worried it could become embroiled in a US trade war.

America has imposed stiff import taxes on the steel industry to help its ailing industry and the EU is set to fight back.

The British Wool Textile Export Corporation says EU officials are poised to widen the current steel dispute by introducing retaliatory taxes on the US wool industry.

EU spokesman Anthony Gouch says the move would help "to encourage the US to come into line with the rules of the World Trade Organisation".

Peter Ackroyd, director of the BWTEC, said: "Should Brussels be allowed to use textiles as a retaliatory measure in the steel dispute, it is highly probable the US will react with further tariff increases on EU textile goods."

The EU imports textiles goods worth £1.3 billion a year from the US.

The UK wool textile industry directly exports more than £27 million worth of raw wool, yarns and fabrics to the US every year.

Mr Ackroyd added: "We object to being used as cannon fodder in a trade war that does not concern us.

"The textiles industries of the EU and the US enjoy an excellent bilateral working relationship and Brussels should be told to back off immediately.

"We will be giving a very forceful but simple message to the government - 'Do not let the EU meddle with a market that has been crucial to the sustained success of spinners of carpets, weaving and knitwear yarns and for weavers of interior and apparel fabrics' - especially at a time when business in Europe has been flat or unprofitable due to the pound being up to 20 per cent over-valued against the euro."

Any EU measure which do get the go-ahead will come into affect this June.