This Week in ESG and Impact Investing

  The recent anti-Diversity, Equity, and Inclusion (DEI) initiatives and the imposition of broad tariffs share underlying themes that disproportionately affect non-white and marginalized communities, both domestically and internationally. These policies can be examined through the lens of systemic racism, as they often reinforce existing inequalities and hinder efforts toward racial and economic justice. https://www.linkedin.com/pulse/tariffs-anti-dei-backlash-twin-pillars-racist-anti-democratic-3hrze

In February 2025, Trump announced tariffs targeting imports from Mexico, Canada, and China, claiming to bolster domestic manufacturing and address trade imbalances. These tariffs included a 25% duty on goods from Mexico and Canada and a 10% duty on Chinese imports. Such measures were projected to significantly impact Black and minority-owned businesses , which often rely on cost-effective supply chains and imported goods. (See:  https://www.impactinvesting.online/2025/02/trumps-tariffs-heavy-blow-to-black-and.html )  Since then, the administration has expanded its tariff strategy. On April 2, 2025, Trump declared "Liberation Day," introducing a 10% baseline tariff on all imports, with higher rates for specific countries. For instance, imports from China now face a 34% tariff, while those from the European Union are subject to a 20% tariff. These tariffs are set to take effect on April 5, 2025. ​ Implications for Black and Minority-Owned Businesses: Escalating Operational Cost...

The recent US Presidential election on November 5th, which will lead to Trump’s second term, has raised concerns in South Korea across multiple sectors, including trade, energy, high-tech industries, financial markets, and diplomatic policies. In the week following the presidential election, various analysts predict that the new administration will have a significant impact on South Korea’s economy. According to the Korea Chamber of Commerce, the most likely scenarios include the introduction of a “Tariff on All Imports,” a “Return to Fossil Fuel,” an increase in “Uncertainties in the High-Tech Industry,” “Monetary Policy Interference,” and “Personal Diplomacy” between North Korea and the United States. I believe South Korea must prepare in advance for these changes. Tariffs on All Imports: Given South Korea’s trade surplus with the United States—$44.4 billion last year and $28.7 billion in just the first half of this year—there are strong possibilities for the renegotiation of existi...

The Federal Reserve’s Federal Open Market Committee (FOMC) meeting statement on March 21, indicated that the Committee voted for a quarter-point increase in federal fund rate. (See:  http://twisri.blogspot.com/2018/03/probability-of-fed-rate-hike-in-march.html ) The Fed seemed to signal, by this rate hike, that a more robust  economic outlook, strengthened, at least in part, due to fiscal policy (tax bill), provides a solid base on which to tighten (increase interest rates) monetary policy more aggressively in the future. The FOMC also sought to cling to a strategy in 2018 , according to the statement , that “ supports strong labor market conditions and a sustained return to 2% inflation .” Top  FOMC  considerations : Inflation targets and the labor market This cautious stance diverged from market expectation in a surprising way: the market seemed to expect more . The accommodative monetary policy ...