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The hidden carbon accounting costs of tariffs

A flawed methodology amplifies both environmental and financial risk

    • Tariffs raise the apparent cost of imported goods, and when those inflated costs are plugged into spend-based emissions models, they artificially elevate the associated carbon footprint.
    • Tariffs raise the apparent cost of imported goods, and when those inflated costs are plugged into spend-based emissions models, they artificially elevate the associated carbon footprint. PHOTO: AFP
    Published Fri, Nov 14, 2025 · 07:00 AM

    AMID rising global trade tensions, businesses across Asia are confronting not just supply chain disruption and rising costs, but also an underappreciated consequence: distorted sustainability reporting.

    While much attention has been paid to the macroeconomic impact of tariffs, the less visible but equally serious effect lies in how tariffs distort carbon accounting – specifically when businesses rely on spend-based emissions estimates.

    Trade uncertainty and regional economic impact

    Across Asia, recent volatility in tariffs has had wide-ranging effects.

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