Conventional wisdom suggests tariffs leads to demand destruction, which in-turn could ease environmental impacts (through lower carbon intensity that lower GDP growth brings on a first order basis). Having said that, should there be a re-allocation of production, onshore or to other trade partners – due to the forces of deglobalisation – then the energy and/or electricity mix of the alternative country’s matter. In this week’s podcast, Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), offers a list of considerations for corporates and investors looking to assess sustainability impacts of recent tariff developments.
The MUFG Global Markets Podcast can be found directly on our MUFG Podbean page or via a number of platforms, including Spotify, Apple, and Stitcher.