The EU and US have struck a last-minute trade agreement that averts a major tariff hike but leaves European leaders divided over the cost of compromise.

Donald Trump said the deal, announced with EU chief Ursula von der Leyen, involved a 15% baseline tariff on EU exports to the US. The deal came shortly before an August 1 deadline set for deals on US tariffs.

The United States and the European Union agreed on Sunday to a trade framework setting a 15% tariff on most goods, staving off — at least for now — far higher import duties on both sides that might have sent shock waves through economies around the globe.