It was England's first appearance in the final of a global tournament since their World Cup victory 51 years ago.
Everton forward Dominic Calvert-Lewin's first-half goal was enough for victory thanks to Newcastle goalkeeper Freddie Woodman's second-half penalty save.
Woodman denied Adalberto Penaranda from the spot after the Malaga forward was fouled by Kyle Walker-Peters.
With 17 minutes to play, the referee pointed to the spot to signal a penalty before immediately referring to the video assistant referee.
The decision stood - there was the slightest of contacts - but Newcastle keeper Woodman's strong palm kept out Penaranda's effort.
In the first half Ronaldo Lucena hit the post with an audacious long-range free-kick that had Woodman well beaten, while Tottenham midfielder Josh Onomah saw a powerful effort strike the underside of the Venezuela bar after the break.
After the match, England forward Dominic Solanke, due to join Liverpool from Chelsea on 1 July, was awarded the Golden Ball given to the player of the tournament. Previous winners of the award include Diego Maradona, Lionel Messi, Luis Figo, Paul Pogba and Sergio Aguero.
Woodman was awarded the Golden Glove, given to best goalkeeper of the tournament.