The measures could affect Xeroxs high-end machines, including the DocuColor 2060 and its new iGen3, both manufactured in Rochester, New York.

The increased tariffs on a range of US goods, which equate to 232m (E377m) a year, have been proposed by the European Commission and are currently being considered by the European Council.

A spokesman for the European Commission said: We dont want to take these counter measures but there are two possibilities either the US compensates, or we will be forced to have sanctions on products from the States.

Brussels plans to increase tariffs on selected goods from 18 June including fruit, T-shirts and stainless steel. A second set of increases, of 30%, would be imposed on printing machinery if the World Trade Organisation rules in favour of the European Union that the US had broken trade agreements. It is believed that the secondary sanctions could be in force by the autumn.

The range of printing equipment targeted by the European Commission includes plates, cylinders, ink-jet printing machines as well as photocopying equipment incorporating optical or thermo- copying systems.

Encads managing director for European, Middle Eastern and African operations, Philip Cullimore, said that the firm manufactured in the US, but declined to comment on the European Commissions proposals.

The measures are in response to the US governments decision, which started on 20 March, to raise steel import tariffs by 30% to protect domestic industry.

Story by John Davies