⚔ Geopolitics risk-off · 6–18 months
A what‑if from the future

What if the US slapped a blanket 60% tariff on Chinese imports?

Blanket 60% China tariffs are a broad risk-off margin shock: tech supply chains are the most exposed, so the Nasdaq and semis lead, Alibaba and the yuan absorb the China-side hit, and the move is index-wide rather than a single channel. The live template is the Apr-2025 'Liberation Day' tariff cascade and the 2018-19 tranche war, both of which gapped semis and pressured CNY toward/through 7. Transmission: China retaliates via rare-earths and CNY depreciation to offset tariffs, exporting disinflation — so the second leg is FX, not just equity beta.

28%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 28% · 90% range 14–42% · 40 analogues · measured class trade_war 87% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 87% in 18 mo87%
Analyst prior · editorial share 35% of the class30%
Pooled · weight 87%29%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)29%
Published28%

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 6–18 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. The US imposes blanket 60% tariffs on all Chinese imports. The trigger decomposes into signed root‑shocks — 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▼ -3.6%
hist -2.17–-1.09% · other way -0.29% (n=12)
2Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -3.4%
hist -2.16–-0.75% · other way +2.4% (n=12)
3Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -3.0%
hist -2.8–+0.97% · other way +4.34% (n=12)
4TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.9%
hist -2.31–+0.18% · other way +3.35% (n=12)
5Alibaba BABAon Hyperliquid 📈 chartEquity▼ -2.3%
hist -1.76–+0.05% · other way -2.98% (n=12)
6AMD AMDon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.92–+0.07% · other way -1.13% (n=12)
7Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.95–+0.68% · other way +1.14% (n=12)
8Micron MUon Hyperliquid 📈 chartEquity▼ -2.4%
hist -4.66–+0.35% · other way +5.45% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.65–-0.15% · other way +1.84% (n=12)
10Tech sector XLK 📈 chartEquity▼ -2.5%
hist -1.62–-0.76% · other way -0.38% (n=12)
11ASML ASMLon Hyperliquid 📈 chartEquity▼ -2.3%
hist -3.63–+0.27% · other way -0.64% (n=12)
12Chinese yuan CNY 📈 chartFX▼ -1.8%
hist -1.28–-0.42% · other way -0.81% (n=12)
13Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.6%
hist -4.26–+0.48% · other way -0.58% (n=12)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -1.3%
hist -8.75–-0.05% · other way -5.61% (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 -2.5% · Chinese yuan -1.8% · Aussie dollar -0.8% · Freeport (copper) -0.7% · Turkish lira -0.7% · Indian rupee -0.6%

Why we may diverge from history

Trust the cascade's SHORT on MSTR/SOL/AVGO: their +65%/+29%/+32% tariff-window 'gains' are BTC-bull and AI-beta moves swamping the trade channel; XAU's +2.8% is the cleaner tell but the crypto/chip analogues are regime-contaminated.

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 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Mexican peso crash on Trump 2016 win 2016-11 Smoot-Hawley clears the US House 1929-05 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 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 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 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 India Adani-Hindenburg rout 2023-01 Solana craters toward $8 on FTX/Alameda overhang 2022-12 Offshore yuan hits a record low 2022-11 CoinDesk exposes Alameda's FTT-heavy balance sheet 2022-11 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
INTC INTCSHORT-6.3% · 5d -3.4%81%39 0.61✓ matches cascade
CL CLSHORT-3.2% · 5d -1.8%77%39 0.40✓ matches cascade
ETH ETHSHORT-7.3% · 5d -6.1%71%38 0.33✓ matches cascade
SPX SPXLONG+0.7% · 5d +0.1%67%39 0.33⚠ differs
XCU XCUSHORT-1.4% · 5d -0.9%70%39 0.32✓ matches cascade
GBPUSD GBPUSDLONG+0.4% · 5d -0.1% ↺ fades67%39 0.30⚠ differs
KWEB KWEBSHORT-1.0% · 5d -0.5%65%39 0.27✓ matches cascade
QCOM QCOMSHORT-3.1% · 5d -2.7%67%39 0.25✓ matches cascade
MU MUSHORT-3.2% · 5d -2.9%65%39 0.23✓ matches cascade
TRY TRYSHORT-1.8% · 5d +0.7% ↺ fades65%39 0.23✓ matches cascade
KRW KRWLONG+0.5% · 5d +0.1%63%39 0.23⚠ differs
Gold XAULONG+1.3% · 5d +0.1%63%39 0.23⚠ differs
EURUSD EURUSDLONG+0.4% · 5d +0.1%63%39 0.22⚠ differs
SOL SOLSHORT-7.9% · 5d -8.4%64%37 0.21✓ matches cascade

Why this probability

Tariff-prone admin, rates already high; specific 60% blanket plausible but not base case. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

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.