The European Union on Tuesday signed an agreement with Japan that will create the world’s largest free trade zone before attacking Donald Trump for triggering possible trade wars with his protectionist “America First” policy.

The Japan-EU Free Trade Agreement will eliminate nearly all tariffs between the bloc and the world’s third biggest economy. The EU will abolish tariffs on Japanese cars in return for Tokyo eliminating tariffs on European cheese and wine.

It will cover a third of the global economy and 600 million people, after it is ratified by the European Parliament.

In an unmistakable swipe at Mr Trump, Donald Tusk, the President of the European Council, said: “We are putting in place the largest bilateral trade deal ever. This is an act of enormous strategic importance for the rules based international order at a time when some are questioning this order.”

The deal is meant as a chastening rebuke to the US, which on Tuesday escalated its trade disputes with the EU by filing WTO complaints against the bloc’s retaliatory tariffs on US products which followed American tariffs on steel and aluminium imports.

The EU argues that those tariffs, which Mr Trump has justified on spurious grounds on national security, break WTO rules.