European leaders have admitted the EU’s trade deal with the US will hit their economies, after Brussels surrendered to Mr Trump’s demand for a hefty 15pc tariff.

German chancellor Friedrich Merz said his country’s economy, Europe’s largest, would suffer “substantial damage”, but “we couldn’t expect to achieve any more”.

French prime minister Francois Bayrou said the deal amounted to “submission” to Mr Trump, and was a “dark day” for Europe.

The euro fell by the most in two months against the dollar, dropping 1pc as fears grew over the impact of the deal on Europe’s fragile economies. Germany’s main stock market index led European bourses lower, while Wall Street made early gains.

EU trade commissioner Maros Sefcovic said the deal was “better than a trade war with the United States” and was “clearly the best deal we could get under very difficult circumstances”.

But few national leaders seemed willing to endorse a deal in which Brussels accepted higher tariffs on EU exports than those Mr Trump agreed with Britain, but chose not to levy any new taxes on incoming American goods.

Hungary’s Prime Minister Viktor Orban said Mr Trump had “eaten [European Commission president Ursula] von der Leyen for breakfast”, while Spanish prime minister Pedro Sanchez said he supported Brussels’ deal “without any enthusiasm”.

The European Trade Union Confederation said the deal would result in “significant job losses” for export-dependent industries, while the bloc’s pledge to buy more American weapons and energy could risk more than $1.3bn (£1bn) of “lost investment”.

“There is no escaping the fact that this is an asymmetrical deal in favour of the US,” the ETUC said.

Gilles Moec, group chief economist at Axa, said the deal could slash half a point from the eurozone’s GDP, which equates to losing about €75bn (£65bn) of economic output.

Read the latest updates below.

Thanks for joining us today on this blog.

That’s all for today but you can continue reading all the latest business and economic news here.

US stock indexes are drifting this evening after the US agreed to tax most products from the European Union at a 15pc rate, lower than Donald Trump had previously threatened.

The S&P 500 is virtually unchanged after setting a record highs every day last week. The Dow Jones Industrial Average is down less than 0.1pc, and the Nasdaq is 0.3pc higher.

Tesla added 3.9pc after its Elon Musk, its chief executive, said it had signed a deal with Samsung that could be worth more than $16.5bn (£12.3bn) to provide chips for the electric vehicle company. Samsung’s stock in South Korea jumped 6.8pc.

Other companies in the chip and artificial-intelligence industries were strong. It comes after Alphabet last week said it was increasing its spending on AI chips and other investments by $10bn to $85bn.

Markets are now awaiting news from hundreds of US companies, who are lined up to report how much profit they made during the spring. This includes market heavyweights Apple, Amazon, Facebook owner Meta and Microsoft. Those companies have grown so huge that their stock movements can almost solely dictate what the overall S&P 500 index does.

On Wednesday, the Federal Reserve will announce its latest decision on interest rates.

The European Commission has defended its trade deal with President Donald Trump, with EU capitals and businesses sharply divided on an outcome some branded a “capitulation”.

“I’m 100pc sure that this deal is better than a trade war with the United States,” top EU trade negotiator Maros Sefcovic told journalists.

European Commission president Ursula von der Leyen clinched the framework accord with Mr Trump on Sunday after dashing to Scotland as the Aug 1 deadline loomed for steep levies that threatened to cripple Europe’s economy.

EU exports are now set to face across-the-board tariffs of 15pc - higher than customs duties before Trump returned to the White House, but much lower than his threatened 30 percent.

The 27-nation bloc also promised its companies would purchase energy worth $750bn (£560bn) from the United States and make $600bn in additional investments - although it was not clear how binding those pledges would be.

“This is clearly the best deal we could get under very difficult circumstances,” Mr Sefcovic said.

The FTSE 100 gave up early gains today after an initial positive reaction to the EU-US trade deal was followed by caution ahead of a pivotal week of data, earnings and central bank meetings.

The blue-chip index closed down 0.4pc, at 9,081.44. It had traded as high as 9,169.01.

The FTSE 250 closed 0.8pc lower, at 21,951.80.

In European shares, the Cac 40 in Paris fell 0.4pc, while the Dax in Frankfurt declined 1pc.

Markets had initially opened higher, taking a glass half full view of the EU-US trade deal.

AJ Bell’s Russ Mould said markets took the view that the outcome “could have been worse”, the risk of an escalating trade war has been lowered and that the EU is better off than it was on April 2, after the United States’ initial launch of baseline and reciprocal tariffs.

But France’s prime minister Francois Bayrou said the EU had “resigned itself into submission”, while Germany’s biggest industry body, the Federation of German Industries, warned that the agreement was “an inadequate compromise”.

Ireland’s economy contracted in the second quarter, according to new figures, as multinationals operating in the eurozone nation cut exports.

Gross domestic product shrank 1pc in the April-June period, the Irish Central Statistics Office (CSO) said in a statement.

GDP had expanded by 7.4pc in the first quarter as companies ramped up exports to the US in anticipation of Donald Trump’s tariffs.

CSO statistician Enda Behan said the drop in the second quarter “was driven by a decrease in the multinational dominated sector of industry”.

The statistics body previously noted that strong GDP growth in the first quarter had been “driven by significant growth in exports of goods”.

Ireland has a major pharmaceutical industry - a target of Mr Trump’s tariffs.

It employs about 50,000 people in the country and accounted for nearly half of Irish exports last year.

The German economy will suffer “significant damage” from tariffs, the German prime minister has warned, according to a journalist from Germany’s Welt newspaper.

Friedrich Merz had yesterday welcomed the US-EU trade deal, to some extent, but suggested that he “would have wished for more relief in transatlantic trade”.

EIL – Merz zu Zöllen: Deutsche Wirtschaft wird "erheblichen Schaden nehmen" /dde: So ist es

— Daniel D. Eckert (@Tiefseher) July 28, 2025

Wall Street shares rose slightly this afternoon, while European stock indexes turned lower and the euro took a tumble.

The weekend’s US-EU trade deal, which European Commission president Ursula von der Leyen described as the best the bloc could get, will impose a 15pc import tariff on most EU goods.

While the accord may avert a damaging standoff between the trading partners, which account for almost a third of global trade, some European capitals complained it was lopsided in favour of Washington.

Monday’s modest equity reaction followed a series of record highs for the S&P 500 and Nasdaq, thanks to solid quarterly earnings so far, bets on megacaps and artificial intelligence stocks as well as optimism that the US would ultimately reach agreements with its trading partners.

The removal of uncertainty for the US-EU relationship was a relief for investors, according to Phil Orlando, chief market strategist at Federated Hermes, who saw the 15pc tariff as a lot better than “some of the ridiculous numbers that were being thrown around back in the first week in April.”

“You’ve got some certainty going forward, and you’ve got numbers that seem reasonable,” said Mr Orlando. He said that Monday’s modest reaction made sense after recent gains and ahead of a big week for company results and a US Federal Reserve meeting.

Apolline Menut, at fund manager Carmignac, meanwhile called the deal a win for the US, given that the deal includes forced purchases of US energy and military equipment and zero tariff retaliation by Europe.

“This isn’t a trade breakthrough - it’s damage control for the sake of diplomatic pragmatism,” she said. “The economic cost may sting, but the strategic calculus is brutally rational.”

Talks between Canada and the United States on a trade deal are at an intense phase, Canadian prime minister Mark Carney has said.

The two sides are working towards an agreement by Aug 1, the date Donald Trump is threatening to impose a 35pc tariff on some Canadian imports.

“The negotiations are at an intense phase. It’s a complex negotiation ... we will only sign a deal that’s the right deal,” Mr Carney said.

“There is a landing zone that’s possible, but we have to get there, and we’ll see what happens.”

Mr Carney said earlier this month that Canada - which sends 75pc of its exports to the United States - would most likely have to accept some tariffs.

The European Union and United States will develop a metals alliance to mitigate the impact of subsidised Chinese production as part of their trade deal, the European trade commissioner has said.

Maros Sefcovic said that EU steel and aluminium makers will be granted a quota system with minimal or zero tariffs to replace Donald Trump’s 50pc import tariffs. The system is yet to be finalised.

“The agreement is clear prospect of joint action on steel, aluminium, copper and the derivatives in what I’d like to call a metals alliance, effectively creating a joint ring-fence around our respective economies through tariff rate quotas at historic levels with preferential treatment,” Mr Sefcovic told a press conference.

“It became very, very clear that if it comes to steel and metals we are not each other’s problem.”

For Europe, finding a way to remove US steel tariffs has become even more urgent as its smelters are losing scrap supplies to US plants. Scrap is a major input in smelters because it is sold at a discount to primary metal and is less energy-intensive to turn into a finished product.

The possible alliance and quota system reveal growing momentum to counter Chinese output. At the G7 finance meeting in May, officials agreed to tackle “excessive imbalances” in the global economy without explicitly naming China.

“I have to say that despite the strenuous efforts of my colleagues and myself and several long meetings with my Chinese counterparts, unfortunately, the list of the accumulated issues on the table will not get shorter, but just grew longer,” Mr Sefcovic said, referring to last week’s EU-China Summit.

“Clearly the issue is overcapacity. The issue is linked with what we perceive as illegal subsidies.”

The US is to restart trade talks with Thailand and Cambodia after the two nations agreed to a ceasefire, Donald Trump has said.

He wrote on his Truth Social platform: “I have instructed my Trade Team to restart negotiations on Trade. I have now ended many Wars in just six months - I am proud to be the President of PEACE!”

Tariffs on British-made steel will be cut “pretty soon”, the US president has said.

Donald Trump had agreed to zero per cent tariffs back in May, but trade negotiators on both sides of the Atlantic have been tied up trying to agree the rules on which products count.

Mr Trump added: “We’re a big buyer of steel. We’re going to make our own steel. We’re going to make our own aluminium, for the most part. But we buy a lot of aluminium from here [the UK] and a lot of steel, too.

European stock markets are steadily falling this afternoon, after opening higher this morning amid initial positivity over the US-EU trade deal.

Germany’s Dax has fallen 1.pc, France’s Cac 40 is down 0.4pc and the pan-European Stoxx 600 is down 0.3pc. The FTSE 100, meanwhile, is down 0.6pc.

European shares had earlier advanced to a four-month high. However, there has subsequently been significant criticism in Europe of the trade deal, including from the French and Spanish prime ministers.

American and Chinese economic officials resumed trade talks in Stockholm today, with US Treasury chief Scott Bessent and Chinese vice-premier He Lifeng both attending.

Donald Trump told reporters in Scotland: “I’d love to see China open up their country. So we’re dealing with China right now as we speak.”

Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo.

US trade representative Jamieson Greer said he did not expect “some kind of enormous breakthrough today” at the talks in Stockholm.

“What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward,” he told CNBC.

Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely.

The S&P 500 and the Nasdaq opened at record highs, while the Dow was on the cusp of that amid optimism from a US-EU trade pact.

The S&P 500 is up 0.1pc and the Nasdaq gained 0.3pc. The Dow is roughly flat. The S&P 500 has gained more than 30pc and the Nasdaq over 40pc since their April lows.

President Donald Trump and European Commission president Ursula von der Leyen unveiled a trade deal on Sunday, setting import tariffs on most EU goods at 15pc - half the previously threatened rate set for Aug 1.

Last week, a string of deals with major US trade partners including Japan, Indonesia and the Philippines fuelled robust gains on Wall Street.

But the market’s remarkable rally faces a crucial test in the days ahead, as Magnificent Seven heavyweights Meta, Microsoft, Amazon and Apple prepare to report their earnings, potentially setting the tone for Wall Street.

Last week, Alphabet surprised Wall Street with a bold capital spending hike, reviving AI optimism, even as Tesla cast a shadow by warning of tough quarters ahead amid shrinking electric vehicle subsidies.

“This is about as busy as a week can get in the markets. This week could make or break that momentum in the near term. With four of the Magnificent Seven stocks reporting earnings, the tech sector has the potential to lead the market, either higher or lower,” said Chris Larkin, of E*Trade.

Donald Trump said he expected the US to set tariffs in the range of 15pc to 20pc for those countries that did not reach a negotiated trade agreement with Washington.

“I would say it’ll be somewhere in the 15 to 20pc range,” Trump told reporters, sitting alongside Sir Keir Starmer at his golf resort in Turnberry, Scotland. “Probably one of those two numbers.”

Mr Trump has said his administration will send out letters soon to some 200 countries notifying them of their expected tariff rate on exports to the United States.

The US president imposed an additional 10pc tariff on most countries from April, with many others slated to see their tariff rates rise from Aug 1.

Sander Tordoir, chief economist at the Centre for European Reform, and a former European Central Bank official, blames the poor trade terms secured by the EU on the unwillingness of Brussels to retaliate.

“Brussels talked a big game about readiness for a trade war - but failed to load the retaliation gun,” he says.

Brussels talked a big game about readiness for a trade war—but failed to load the retaliation gun. No in-sector countermeasures. No pressure on US services exports. No coalition with Japan or Korea. Just hoping Trump would blink.

The EU missed key chances to up the ante.

2/ pic.twitter.com/67HKVk2YcC

— Sander Tordoir (@SanderTordoir) July 28, 2025

All-inclusive deals are designed to take the hassle out of a holiday, albeit at a price.

But while Ursula von der Leyen claimed her “15pc across-the-board, all-inclusive” trade agreement with Donald Trump was a bargain, everyone else in Europe was left feeling they’d been massively ripped off .

The president of the European Commission smiled through gritted teeth as she announced the deal, which was quickly criticised across the Continent by politicians, economists and business leaders alike.

Entrepreneurs said the deal epitomised the “century of humiliation” for a bloc that 15 years ago was slightly bigger than America’s - but is roughly a quarter smaller today.

My colleagues Szu Ping Chan and Hans van Leeuwen have the full story here. 

The European Trade Union Confederation has warned that the deal announced by the US and EU will result in “significant job losses”.

In export-dependent industries, the union fears it will depress hiring and wages by depressing the Continent’s economy.

It also warns that the EU’s pledges to buy weapons and energy from American risked more than $1.3bn of “lost investment” that could have gone into European industries.

“There is no escaping the fact that this is an asymmetrical deal in favour of US,” the union says.

Esther Lynch, the ETUC’s general secretary, adds: “The EU institutions cannot make working people pay for their failure to stand-up to Donald Trump.

“It is not sufficient to say this is the best we could do. Europe must develop a credible autonomous industrial strategy which secures and strengthens jobs and production in Europe.

“It is important now for the EU to have a plan to finalise the deal without making further concessions.”

Pedro Sanchez, the Spanish prime minister, said is the latest EU leader to make a gloomy statement about the European Commission’s trade deal with the US.

“I value the constructive and negotiating attitude of the president of the European Commission,” he told journalists on Monday.

“I support this trade agreement, but I do so without any enthusiasm.”

European leaders hailed the certainty provided by the trade deal, but that does not mean the extra taxes are beneficial for their economies.

Gilles Moec, group chief economist at Axa, says the tariff blow to growth “is no small change”.

“According to our usual framework, this would dent eurozone GDP by roughly half a point,” he says.

That is equivalent to losing around €75bn of economic output.

That is an extra pressure on top of the strain of a strengthening currency - the euro has risen against the dollar for much of the year, making the bloc’s exports less competitive on the global market.

“The currency appreciation so far this year would hit GDP by roughly the same magnitude as the tariff shock itself,” says Moec.

At least today’s 0.7pc dip in the euro to $1.165 should help take the edge off.

Ursula von der Leyen placated Donald Trump by promising the EU would buy $750bn of energy from the US over the rest of the American President’s term of office.

Trump was delighted:  “Energy is a very important component. We have more energy than anybody else,” he said. “It was very wise to buy a lot of energy. It is great stuff. It solves a lot of problems.”

As a result he limited tariffs on EU goods exported to the US to 15pc, not the 30pc previously threatened.

Unfortunately economists doubt it would be possible for the EU to ship in that much fuel from the US, even if the European Commission had the power to compel European households and businesses to buy American.

Bas van Geffen at Rabobank says even if EU buyers sought American energy at the expense of every other supplier, it might not be enough.

“The big question is whether that can even be achieved. In 2024, all energy flows from the US to the EU totalled only around $65bn,” he says.

“Even if Europe were to source all of its diesel and LNG from the US, this is a massive stretch – and would go against Europe’s agenda of diversifying suppliers for key resources.”

London’s main stock indexes inched higher on Monday as investors assessed a trade deal between the United States and the European Union.

The internationally-focused FTSE 100 rose 0.1pc this morning, while the more domestically-focused FTSE 250 index was up 0.3pc.

Automobiles and parts stocks led the gains, up 1.1pc. The real estate sector advanced 0.8pc, meanwhile.

Germany’s car makers will be forced to pay billions of euros in tariffs even after the US-EU deal, hampering their transition to electric vehicles, a trade body has warned.

On Monday, the German Association of the Automotive Industry (VDA) welcomed the agreement and said it would prevent “escalation”.

But association chief Hildegard Müller added: “One thing is also clear: the US tariff of 15 percent, including for automotive products, will cost the German automotive industry billions annually and will burden them in the midst of the transformation.

“In view of the far-reaching commitments for additional investments in the USA, the details of which are still open, the EU is now all the more urgently called upon to make the framework conditions in Europe internationally competitive for investors and companies in order to become more attractive and relevant as an investment location again.”

In Washington, Mr Trump’s deal is being hailed as a great victory.

Stephen Miller, one of the President’s inner circle, is crowing that the outcome for the US is “impossible to overstate”.

Impossible to overstate what a staggering achievement President Trump delivered for America today with his EU trade deal. A total rebalancing and reversal of generations of failed one-side trade policy. STUNNING.

— Stephen Miller (@StephenM) July 27, 2025

Some more reaction this morning from EU leaders to the trade deal with the US:

Viktor Orban, Hungarian PM:

“This is not an agreement ... Donald Trump ate von der Leyen for breakfast, this is what happened and we suspected this would happen as the U.S. president is a heavyweight when it comes to negotiations while Madame President is featherweight.”

Giogia Meloni, Italian PM (pictured):

“I consider it positive that there is an agreement, but if I don’t see the details I am not able to judge it in the best way.”

Petteri Orpo, Finnish PM:

“The agreement brings much-needed predictability to the global economy and Finnish companies. Work must continue to dismantle trade barriers. Only free transatlantic trade benefits both sides the most.”

Benjamin Dousa, Swedish trade minister:

“This agreement does not make anyone richer, but it may be the least bad alternative. What appears to be positive for Sweden, based on an initial assessment, is that the agreement creates some predictability.”

Simon Harris, Irish trade minister:

“A deal provides a measure of much needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world.

While Ireland regrets that the baseline tariff of 15pc is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment.”

Donald Trump will host Sir Keir Starmer at his Scottish golf resort on Monday for talks expected to cover their recent trade deal as well as the worsening hunger crisis in Gaza.

The US president, fresh from announcing an agreement on tariffs with the European Union late on Sunday, said he expected Starmer would also be pleased.

“The prime minister of the UK, while he’s not involved in this, will be very happy because you know, there’s a certain unity that’s been brought there, too,” Trump said.

“He’s going to be very happy to see what we did.”

The French prime minister, François Bayrou, has slammed the deal with Donald Trump as a “dark day” for the “free peoples” of Europe.

It is the highest-level comment from the French government so far and suggests there could be a serious split this morning among EU member states.

Accord Van der Leyen-Trump : c'est un jour sombre que celui où une alliance de peuples libres, rassemblés pour affirmer leurs valeurs et défendre leurs intérêts, se résout à la soumission.

— François Bayrou (@bayrou) July 28, 2025

Friedrich Merz, the German chancellor, has welcomed the US-EU trade deal - but not everyone in his country is happy.

“We have managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade,” he said in a statement issued on Sunday evening.

A no-deal scenario would have “hit the export-oriented German economy hard,” he added.

However, this morning Wolfgang Niedermark, a board member of the Federation of German Industries trade body, said the agreement was “an inadequate compromise”, with the EU “accepting painful tariffs”.

Despite facing higher tariffs when selling into the US, EU car makers will “actually set to benefit from the deal”, according to an analyst at Morningstar.

Rella Suskin said the 15pc import tariff is “far less burdensome” than the 27.5pc that Donald Trump had imposed on EU automotive firms earlier this year, even though it was up from 2.5pc previously.

But EU car makers, US sales that are not sourced domestically are primarily sourced from Europe or Mexico or Canada. The deal therefore benefits those that have a greater reliance on imports from Europe.

Porsche, Mercedes, BMW, and Volkswagen were the most significant winners by that measure, she said, although VW and BMW are reportedly working on their own mini-deals with the White House as well.

Sir John Redwood, a senior Tory backbencher and former minister in the Major government, this morning argues that the EU’s “bad” trade deal shows that Britain should not follow through with Labour’s agreement to follow the bloc on food standards.

Under the agreement struck by Sir Keir Starmer, the UK will be paying the EU to sign up to food standards and a common carbon trading market.

Why is the government pressing on with signing Uk up to EU food regulations and trade barriers? Don't they understand this will limit our powers to do our own trade deals when we need those freedoms most? The EU has just shown how bad it is at doing trade deals.

— John Redwood (@johnredwood) July 28, 2025

Shares in German car giant VW have fallen this morning, as a US-EU trade deal signalled higher tariffs for the automotive industry.

VW’s stock dipped 0.6pc in early trading.

The drop comes after the deal announced with the US agreed broad tariffs of 15pc on most sectors, including cars.

Previously European cars shipped to the US faced tariffs of just 2.5pc.

Donald Trump has said the imbalance was unfair on American firms, which faced 10pc tariffs when selling into the EU.

Under Sunday’s deal, tariffs have equalised at 15pc in both directions.

Donald Trump’s agreement with the EU gives Britain a “substantial tariff advantage, which could drive EU firms to relocate to the UK”, according to a London accountancy firm.

Lubbock Fine says lower tariffs would give UK manufactured goods a clear edge over EU rivals in the US, making their products more affordable for American consumers.

Alex Altmann, a partner at the firm and head of its German desk, says: “The lower tariffs of the UK would be particularly attractive to EU based manufacturers with low profit margins.

“Without that move to the UK, the increase in tariffs could wipe out the profit margins of many EU exporters.

“The UK could be a big indirect winner of this agreement.”

He warned “higher tariffs mean higher prices for US consumers”, adding: “EU companies aiming to stay competitive in the US market will think twice when deciding where to produce or assemble – the benefits of relocating to the UK could be substantial.”

Jonathan Reynolds, the Business Secretary, has said Brexit allowed the UK to secure a better deal than the EU on US tariffs.

He was speaking to Sky News after the EU struck a trade deal with the US that will see European imports subject to a 15pc tariff, compared to the 10pc secured by the UK Government.

Asked whether this was a direct benefit of Brexit, Mr Reynolds told Sky News: “All of the trade negotiations that we’ve got use the fact that we are not part of the customs union anymore, I’m absolutely clear of that. I think we can make the best of that.”

Pushed again on whether he would call it a Brexit benefit, Mr Reynolds later added: “I’m absolutely clear, I’ve said in Parliament many times, this is a benefit of being out of the European Union, having our independent trade policy, absolutely no doubt about that.”

In what appears to be one of the first reactions by a European government, France’s European affairs minister has warned the deal will bring temporary stability but looks “unbalanced”.

Benjamin Haddad said the deal with the US had some merits, such as exemptions for some key French business sectors such as spirits.

But posting on social media platform X, he said: “The trade agreement negotiated by the European Commission with the United States will bring temporary stability to economic actors threatened by the escalation of American tariffs, but it is unbalanced.”

L'accord commercial négocié par la Commission Européenne avec les Etats-Unis apportera une stabilité temporaire aux acteurs économiques menacés par l'escalade douanière américaine, mais il est déséquilibré.

Il a le mérite d'exempter de tarifs des secteurs clés pour l'économie…

— Benjamin Haddad (@benjaminhaddad) July 28, 2025

The EU’s US trade deal is being slated by some of the bloc’s most ardent supporters this morning, our Brussels correspondent Joe Barnes reports.

Guy Verhofstadt, the former Belgian prime minister, long-serving MEP and Brexit antagonist, also claimed the deal was “badly negotiated”.

He said: “The EU-US deal is scandalous… a disaster…with not one concession from the American side.”

Leo Varadkar, the former Irish prime minister, added: “A good trade deal is one that increases trade flows and reduces prices for consumers. This will mean fewer EU exports to the US and higher prices for Americans.

“The only thing it’s better than is no deal at all and that’s only if it sticks.”

And Bernd Lange, the EU Parliament’s trade chief, said: “My first assessment: Not satisfactory.

“This is a lopsided deal.Concessions have clearly been made that are difficult to accept. Deal with significant imbalance. Furthermore lot of questions still open.”

The US-EU deal was only agreed hours ago. But some tensions already seem to be emerging.

As one aghast Italian MEP has asked: Did Brexit Britain manage to secure a better deal with President Trump than Brussels?

In a report by news website Politico this morning, Brando Benifei, the Italian S&D MEP who chairs a committee on US relations, notes: “We seem to have gotten worse conditions than the UK.

“That’s not a good starting point and we need to look at the details to understand what we actually get, because it is — to be frank — not clear at all from the declarations we have seen.”

Under the deal, many EU goods will face tariffs of 15pc, compared to 10pc under the UK deal struck by Sir Keir Starmer.

For some goods, that is a big jump. Before the dispute, for example, the American tariff on EU cars was only 2.5pc.

European stocks looked poised to rise on Monday as a deal between the US and European Union appeared to head off the risk of a damaging transatlantic trade war.

The deal struck by Donald Trump and Urusula von der Leyen, president of the European Commission, on Sunday at the former’s Scottish golf course will set a tariff rate of 15pc for most goods, down from a threatened 30pc.

Full details are yet to be confirmed and a written next still needs to be agreed.

But as traders breathed a sigh of relief, Euro Stoxx 50 futures were up 1.3pc on Monday morning ahead of markets opening.

Speaking on Sunday, Mr Trump said: “This is probably the biggest deal ever reached in any capacity, trade or beyond trade.”

US cars and energy to flood Europe as Trump strikes trade deal | Eleventh-hour agreement in Scottish summit to avert 30pc tariffs

Britain is stuck in a ‘doom loop’, warns hedge fund chief | American billionaire Ray Dalio issues a stark warning about the health of the UK economy

Fintech boss accused of ‘backdoor’ power grab in row over US move | Former partner claims the chief executive is hijacking a crunch shareholder vote to tighten his grip

Thames Water faces rocketing demand for supplies | Utility giant warns that plans to build 100 new data centres across London and the South East will pile more pressure on its creaking infrastructure.

Telecoms chief lands record £131m payday | The boss of a little-known UK telecoms business was handed a record £131m last year, marking the highest-ever package paid by a London-listed business.

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.