‘Big Short’ investor warns the precarious tariff environment reminds him of WWI—and a trade war would send the U.S. into a recession

• Should failed tariff negotiations lead to a trade war, the global economy is likely headed toward a recession, “The Big Short” investor Steve Eisman told CNBC this week. Eisman said the tariffs were the “only real risk” to the markets and warned the U.S. should be especially concerned with negotiating with the European Union ahead of the approaching July 9 trade-deal deadline.

Global markets will enter dire economic straits if President Donald Trump’s ongoing tariff stance leads to an all-out trade war...