Leaders from Europe's two largest economies have led a chorus of gloomy reactions to the trade deal struck between EU chief Ursula von der Leyen and US President Donald Trump, BBC reported.

German Chancellor Friedrich Merz said the agreement would "substantially damage" his nation's finances, while French Prime Minister Francois Bayrou said it was tantamount to "submission".

The reaction has been downbeat across the bloc - though several capitals acknowledged signing an uneven deal was worth it in order to avert an all-out trade war.

It will see a 15% tariff on most EU exports to the US - half the rate threatened by Trump - in return for Europe buying more American energy and slashing taxes on some imports, according to BBC.