⚔ Geopolitics risk-off · 0–6 months
A what‑if from the future

What if Auto tariffs squeeze global carmakers?

Broad US tariffs on imported vehicles and parts compress automaker margins across Europe, Japan and Korea, denting cyclicals and lifting goods inflation.

20%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 20% · 90% range 5–34% · 40 analogues · measured class trade_war 49% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 49% in 6 mo49%
Analyst prior · editorial share 45% of the class22%
Pooled · weight 87%20%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)20%
Published20%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Broad US tariffs on imported vehicles and parts compress automaker margins across Europe, Japan and Korea, denting cyclicals and lifting goods inflation. The trigger decomposes into signed root‑shocks — Consumer spending ▼ · Inflation surprise ▲ · Risk appetite ▼ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.1%
hist -1.44–-0.53% · other way -0.56% (n=12)
2Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.17–-0.53% · other way +1.1% (n=12)
3Tech sector XLK 📈 chartEquity▼ -1.5%
hist -0.96–-0.54% · other way -0.47% (n=12)
4Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.04–-0.38% · other way +2.18% (n=12)
5TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.5%
hist -0.98–-0.42% · other way +2.02% (n=12)
6Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.1%
hist -1.74–+0.06% · other way -1.25% (n=12)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -1.2%
hist -0.61–-0.3% · other way -1.86% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.2%
hist -1.34–+1.8% · other way -1.79% (n=12)
9Micron MUon Hyperliquid 📈 chartEquity▼ -1.2%
hist -0.97–+0.05% · other way +4.47% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.2%
hist -0.93–+0.91% · other way +1.54% (n=12)
11ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.1%
hist -2.7–+0.58% · other way -2.98% (n=12)
12Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.0%
hist -4.87–+1.66% · other way -0.48% (n=12)
13Chinese yuan CNY 📈 chartFX▼ -0.8%
hist -0.96–-0.08% · other way -0.7% (n=12)
14MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.9%
hist -0.98–-0.1% · other way +31.9% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.5% · Chinese yuan -0.8% · Aussie dollar -0.4% · Freeport (copper) -0.4% · High-yield credit -0.2% · Turkish lira -0.3%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Turkish lira record low on rate cuts 2021-11 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 February 2018 hot wage print triggers rate scare 2018-02 Mexican peso crash on Trump 2016 win 2016-11 Silver Thursday 1980-03 Gold peaks at $850 1980-01 1979 Iranian Revolution oil shock 1979-01 Iranian Revolution oil shock 1978-12 Argentina Rodrigazo shock 1975-06 Smoot-Hawley clears the US House 1929-05 Iranian rial slides to a new record low 2025-12 Record $19bn crypto liquidation cascade 2025-10 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 US-China extend tariff truce by another 90 days 2025-08 Trump's 50% copper tariff sends Comex copper to a record 2025-07 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 H5N1 bird flu record US egg prices 2025-04 Tariff-pause record rally and VIX collapse 2025-04 Trump signs 25% Section 232 tariff on imported automobiles 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 Nasdaq Composite first close above 20000 2024-12 Henry Hub natural gas falls to an all-time inflation-adjusted low on record output 2024-11 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08 VIX third-highest spike on record 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 Megacap AI-capex doubt selloff 2024-07 India slashes gold import duty from 15% to 6% in 2024 budget 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
INTC INTCSHORT-5.5% · 5d -3.7%75%35 0.49✓ matches cascade
KWEB KWEBSHORT-3.2% · 5d -1.5%71%34 0.35✓ matches cascade
XCU XCUSHORT-0.8% · 5d -0.7%69%34 0.29✓ matches cascade
ETH ETHSHORT-4.4% · 5d -5.2%68%33 0.26✓ matches cascade
KRW KRWLONG+0.5% · 5d -0.0% ↺ fades64%34 0.24⚠ differs
AMD AMDSHORT-0.1% · 5d -0.6%66%35 0.23✓ matches cascade
QCOM QCOMSHORT-3.4% · 5d -2.5%67%34 0.23✓ matches cascade
30y yield DGS30LONG+8bp · 5d +5bp60%38 0.19✓ matches cascade
BABA BABASHORT-1.1% · 5d -1.9%60%34 0.16✓ matches cascade
MRVL MRVLLONG+1.4% · 5d -2.0% ↺ fades60%34 0.15⚠ differs
INR INRSHORT-0.3% · 5d +0.2% ↺ fades60%34 0.15✓ matches cascade
CNY CNYSHORT-0.5% · 5d -0.3%57%34 0.14✓ matches cascade
NDX NDXSHORT-0.3% · 5d -1.1%60%34 0.13✓ matches cascade
NVDA NVDASHORT-0.2% · 5d -2.0%60%34 0.13✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.