France and Germany have warned about the economic fallout from the 15 percent tariffs European goods face in the U.S.

Both sides hailed the agreement as the biggest ever. But it will come at a cost to the European Union, and many details have yet to be nailed down.

European shares advanced to a four-month high on Monday, led by gains in pharma and semiconductor stocks, after the EU signed a trade deal with the United States, avoiding steeper tariffs ahead of the August 1 deadline.