Economists appear to be revising downward their expectations of the impact tariffs will have on the U.S. economy.

Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy.

United States, European Union stave off 30% U.S. tariffs on imports, due to start on Friday, at least for now. But what about pharmaceuticals?

Less than a day after President Donald Trump claimed that the European Union had agreed to invest $600 billion into the United States as part of a trade deal that will see Trump ask Americans to shoulder a 15 percent import tax on many European goods, EU officials are quietly backtracking.

Leaders from Europe's two largest economies have led a chorus of gloomy reactions to the trade deal struck between EU chief Ursula von der Leyen and US President Donald Trump.