England will have to settle for fourth place after being undeniably out-classed by Belgium in Saint Petersburg.
Thomas Meunier was able to give Belgium the lead within four minutes of the kick-off, as Lukaku was able to cross the ball from the right, with the defender making no mistake in front of goal.
England's heads dropped, and they looked lost in the first half.
They had moments of good play, but for the first 45 minutes, they gave away the ball cheaply and looked anything but secure in defence.
England did have a couple of chances in the first half, with Dier and Sterling managing to find Kane a few times in front of goal.
Following this short period of England possession, Southgate was clapping from the technical area.
A second goal for Belgium looked inevitable in the first half, with Stones hurling his body in front of the ball time and time again, and Pickford diving in front of an onrushing Lukaku on numerous occasions.
The first half ended, and England looked dejected. They had a poor start, and the third place spot was looking less and less achievable in the face of a strong Belgium side.
Half-time saw Southgate make his first changes. Rose and Sterling came off, and Lingard and Rashford took to the pitch.
The changes had a positive impact on the England side, and they looked more alive for the the beginning of the second half.
Lingard was able to make some explosive runs in midfield, but Tielemans and Witsel were able to keep him at bay for the mostpart.
England still looked extremely vulnerable on the defensive, with counter-attacks from Hazard, Lukaku and De Bruyne looking particularly dangerous.
With 20 minutes left to play, Dier can inches from levelling the game. He was able to rush forward from defence, played a one-two with Rashford, and charged through on goal after Kompany lost his footing.
He was able to chip Courtois, but the ball didn't quite have enough power on it, and Alderwiereld was able to slide across, sending the ball wide.
Dier had a few more chances late in the game, and looked like more of a striker than a defender in the box, heading two of Lingard's crosses towards goal.
England's hopes were well and truly snuffed out when a counter-attack saw Belgium rush forward. Hazard was able to control a neat through ball and slot it past the onrushing Pickford into the left corner.
Final whistle blew, and Belgium were able to collect their third-place medals.
A disappointment for England, but they have set a strong precedent for tournaments to come.