Obama wants to avoid 'trade war'

Mr Obama was responding to international criticism of a "Buy American" clause in the $800bn (£567bn) US economic recovery package.

The clause seeks to ensure that only US iron, steel and manufactured goods are used in projects funded by the bill.

The EU said the clause would send "the worst possible signal".

A European Commission spokesman said the EU would launch a complaint with the World Trade Organization (WTO) if the clause remained.