Manchester City lost 4-3 to Celtic in the first game of their preseason tour of the U.S. on Tuesday night.

Pep Guardiola picked Erling Haaland and Jack Grealish in his team, but the Premier League champions were beaten by the champions of Scotland in North Carolina.

Celtic, who handed a debut to goalkeeper Kasper Schmeichel, took advantage of being further ahead in the preseason preparations by taking the lead with a well-worked team goal scored by Nicolas-Gerrit Kuhn.

Oscar Bobb equalised for City before Celtic scored twice towards the end of the first half though Kuhn and Kyogo Furuhashi to take a 3-1 lead into half-time.

Argentinian Máximo Perrone came off the bench for City at half-time and pulled a goal back for Guardiola's team just seconds into the second half after a positive run from Bobb.

Bobb got another assist when he crossed for Haaland, who started the night as captain, to head in City's third at the back post as they briefly drew level before substitute Luis Palma scored the seventh goal of the game to put Celtic back in front.

City have further games in the U.S. against AC Milan and Barcelona while Celtic begin their Scottish Premiership campaign with a home game against Kilmarnock on Aug. 4.