Possible scenario
Trade War Escalates
27% Chance
The U.S. responds to Canada’s 50% retaliatory tariffs by widening trade restrictions, using USMCA uncertainty as leverage. This scenario is plausible because the July tariff move and September retaliation show both governments are willing to absorb near-term economic costs.
Initial impacts
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Market volatility Up
- US dollar Up
Secondary impacts
- Industrials -1.6%
- Non-Energy Materials -1.2%
Portfolio impact
S&P 500-0.7%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
Keeping an eye on this scenario?
Tilt can alert you when its probability or impact shifts, or send you a recommendation when it crosses a threshold.