German Chancellor Friedrich Merz said on Monday he was not satisfied with the result of trade talks with the United States, but "more simply wasn't achievable" and added the German economy would suffer "significant" damage due to the agreed tariffs.

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.