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.

Who pays for these tariffs? Most economists reckon that ordinary Americans will lose out, as prices in shops rise. Mr Trump and his coterie, by contrast, blithely insist that the rest of the world will shoulder the load by cutting their selling prices. So far, the evidence is giving the know-nothings a glimmer of hope.

Unlike the European Union, the Japanese government has made no indication it plans to impose any kind of reciprocal tariff on the U.S., even if the U.S. does move forward with its planned 25% tariffs on all Japanese exports.

Investors gave a tepid welcome to President Trump's trade deal with the European Union. Follow along for live updates on the Dow, S&P 500 and Nasdaq.

EU ambassadors are to meet next week to develop a contingency plan in the event of a no-deal with US President Donald Trump, Bloomberg reports. According to the agency, the vast majority prefers to continue negotiations with the United States to find a way out of the situation before August 1 (the day when the 30% duty is to take effect).

President Donald Trump announced a trade agreement on Sunday with the European Union that would lower tariffs to 15%. The tariff rate is a reduction from the 30% that Trump threatened on July 12 and the 20% he said he would impose on April 2.