Possible scenario
Chinese Retaliation Dominates
20% Chance
China responds before the EU process is complete, trying to split member states by targeting sectors with high exposure to the Chinese market. This path is less likely than negotiation but consistent with Beijing's prior use of critical minerals and country-specific pressure.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Copper Down
- US dollar Up
Secondary impacts
- Consumer Cyclicals -2.8%
Portfolio impact
S&P 500-2.0%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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