Possible scenario
Disputes Keep Recurring
25% Chance
The truce remains formally in place, but recurring disputes over fentanyl enforcement, customs verification, export licenses, and industrial subsidies prevent a clean normalization. Markets price lower tail risk than during the tariff war, but confidence is capped by the threat of snapbacks.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- US dollar Up
- Copper Down
Secondary impacts
- Industrials -0.8%
Portfolio impact
S&P 500-0.4%
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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