Please see below the daily update article from EPIC Investment Partners, received this morning – 15/10/2025
Trade tensions remain elevated ahead of the planned meeting between President Trump and President Xi Jinping early next week. Toe to toe negotiations can be expected.
An interesting article from Goldman Sachs’ economists, recently published, is worthy of note. Elsie Peng and David Mericle suggest that the vast majority of tariffs increases will be borne by Americans, perhaps three quarters. Consumers are estimated to shoulder 55% of tariff costs while American business absorb a further 22%.
The pair estimate that foreign exporters would absorb just 18% of tariff costs by cutting pricing while 5% of tariffs will be evaded by one means or another.
Last year the United States was China’s largest export market accounting for roughly 15% of total exports but exports have fallen sharply this year. This has been more than offset by higher Chinese exports to other markets, especially the Global South.
Following the Irish famine of 1845, the following year Conservative Prime Minister Robert Peel, assisted by the Liberal Party, abolished high tariffs on imported grain which had protected British landowners.
This ended protectionism and ushered in an era of free trade which Britain, unchallenged on the seas, took full advantage of.
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Charlotte Clarke
15/10/2025