They've agreed to zero tariffs on all goods, except cars

A transatlantic trade war has been averted after talks at the White House between US President Donald Trump and the EU Commission President Jean-Claude Juncker.

The two sides said they want to resolve the steel and aluminium tariff issues.

Mr Trump said they also agreed to zero tariffs on all goods, except cars.

"We want to further strengthen this trade relationship to the benefit of all American and European citizens.

"This is what we agreed today to work together towards zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods".

The IMF chief Christine Lagarde welcomed the development, saying: "The global economy can only benefit when countries engage constructively to resolve trade and investment disagreements without resort to exceptional measures."