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.

BERLIN] German Chancellor Friedrich Merz on Sunday welcomed the trade deal between the United States and the European Union, which he said avoided “needless escalation in transatlantic trade relations” - even as many industries criticised it.

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.