ANDY Burnham has been warned he is risking a trade war with Donald Trump over plans to impose sanctions on illegal Israeli settlements.

The PM is poised to announce a boycott on goods and services from the outposts on Palestinian land in a bid to please lefty Labour MPs.

A man in a suit and glasses stands in front of a damaged tank.PM Andy Burnham has been warned he is risking a trade war with the US President Credit: Henry Nicholls/PA Wire President Donald Trump speaking in Washington D.C.The PM could anger Donald Trump over plans to impose sanctions on illegal Israeli settlements Credit: Al Drago/UPI/Shutterstock

However, others in the party are warning him the stand could spark retaliation from .

The US criticised Ireland for a similar move last month.

President Trump also threatened a full with Spain.

It came after they banned goods being imported from illegal settlements.

One Labour MP said: “Our trade and diplomatic relationship with the US is fragile enough as it is.

“We shouldn’t be naive enough to believe we could sanction Israel and not face consequences from the White House.”

We told last month how, after the White House , the UK must then pay duties on top, whereas Brussels levies are all-inclusive.

The trade deal struck with the US means pharmaceuticals, steel and aluminum are protected from these changes.

But Whitehall insiders said products where the EU now faces a lower tariff than the UK are only around 10 per cent of UK exports heading stateside.

Charlotte Brumpton-Childs, GMB national secretary, said: “The EU now has a better trading relationship with the US than we do – which undermines the so-called ‘special relationship’.