UBS On-Air: Paul Donovan Daily Audio 'Tea parties become more expensive'

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Recorded09 Apr 2025

Publishersecure.ubs.com

Handlerec:4542827

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US President Trump implemented an extraordinary tax increase on US consumers overnight. If the 104% tax increase on goods from China is not reversed, it is likely to push the US into recession more rapidly. China’s economy is negatively impacted—but the larger each round of tariffs, the less their marginal impact on foreign growth. USD 55 million of tea imported from China is subject to the 104% tax (in 1773 the UK cut tea taxes).

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