HSBC Global Viewpoint The Macro Brief – How AI can mitigate tariff costs
Aug 29, 2025
Alistair Pinder, Head of Global and EM Equity Strategist at HSBC, delves into the intricate relationship between artificial intelligence and tariffs. He reveals how AI can transform corporate strategies by mitigating rising import costs. Pinder discusses AI's impact on equity markets, driving stock prices upward while helping companies innovate and reduce expenses. Notably, he highlights that S&P 500 firms can achieve an average cost reduction of 1% through AI adoption, showcasing the technology's growing significance in today's economic landscape.
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Tariff Surge And Corporate Cost Pressure
- Effective U.S. tariff rates have risen ~16–17% since Trump's term, the biggest increase since the 1930s.
- That rise is squeezing companies that import roughly 25% of their costs and raising margin pressure.
AI Investment Reorienting The Economy
- U.S. AI investment is massive: the largest tech firms spend nearly $100bn a quarter on AI-related CapEx.
- Data‑centre construction now nearly matches office construction, showing the economy's tilt toward AI infrastructure.
AI's Biggest Payoff: Cost Reduction
- Beyond revenue, AI's underrated impact is cost reduction for end users and firms, including automating tasks previously done by employees.
- These efficiency gains can materially offset margin pressure from higher input costs.