Europe could be at center stage as the Trump administration’s tariffs upend the global trading system, slashing Chinese imports to the U.S., a report from the McKinsey Global Institute finds. President Trump’s aggressive trade policy has sparked concerns about a recession and a painful unwinding of the globalization of recent decades that had expanded profit margins and kept prices low.

Trump’s unpredictable style has earned him the descriptor “TACO” for “ Trump Always Chickens Out ,” while businesses, economists, and investors have criticized him for creating a volatile business environment.

Key Takeaways President Donald Trump's 90-day pause on the "Liberation Day" tariffs expires on July 9.When the deadline passes, the U.S. could re-impose "reciprocal" tariffs on numerous countries, which would be a major drag on the economy.