The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations.

"I think it's the biggest deal ever made," Trump said of the new agreement, which will reduce the bloc's tariff rate to 15 percent.

United States and the European Union on Sunday reached a trade agreement that ends a month-long standoff between the world’s two major economic powers. US President Donald Trump and EU President Ursula von der Leyen announced a deal that imposes 15% tariffs on most European goods.