Trump’s first 100 days: Rethinking ESG as companies navigate tariff uncertainty

Donald Trump is sworn in on January 20, ushering in a new era of “Trump 2.0.”  (Photo: Trump’s official Instagram account) 

As U.S. President Donald Trump marked his first 100 days back in office on April 30, he had already signed more than 100 executive orders—aggressively dismantling his predecessor’s policies and unleashing a tariff shockwave that rattled global trade markets. His dismissive stance on climate change has also fueled a brewing backlash against ESG initiatives.  

In our special series, "Trump’s First 100 Days," RECCESSARY explores the far-reaching impact of Trump’s tariff agenda, climate policies, and corporate strategies, offering an in-depth look at how the renewable energy sector is bracing for disruption.  

As climate change skeptic Donald Trump returns to the White House, his swift moves to exit the Paris Agreement and boycott global climate summits have catalyzed a global anti-ESG backlash. The recent tariff-driven trade war has only added to market instability, placing further pressure on companies pursuing net-zero transitions. In this climate of uncertainty, how can businesses respond in the short term while planning for long-term decarbonization? 

Experts urge quality-led transformation as tariff uncertainty looms 

On April 2, Trump imposed reciprocal tariffs on select countries, only to temporarily suspend them on April 9—granting a 90-day window for negotiation. The rapid policy swings have put global leaders and corporations on high alert, scrambling to secure exemptions. 

These external shocks have also become a wake-up call for businesses to revisit their transformation strategies. According to Lee Yi-hua (李宜樺), Chair of PwC Taiwan’s Sustainability Services, the current wave of uncertainty presents an opportunity for companies to reassess their sustainability roadmaps. She encourages firms to identify the areas most vulnerable to disruption and explore new avenues for innovation and long-term growth. 

The International Monetary Fund (IMF) has already revised its 2025 global GDP forecast downward from 3.3% to 2.8%. Lee warns that high tariffs could significantly erode profit margins and compress ESG investment budgets, ultimately weakening net-zero action plans. In the short term, companies need to assess financial shocks and consider adjustments to their decarbonization strategies. 

“Tariffs will immediately raise product costs and weaken price competitiveness, hurting profitability,” Lee says. Over time, companies must restructure supply chains, re-evaluate raw material sourcing, and possibly relocate production. She urges businesses to proactively list potential impacts and re-identify emerging sustainability risks and opportunities. 

Chao Chia-wei (趙家緯), Director of the Taiwan Climate Action Network (TCAN), agrees. “Taiwan’s industries must prioritize quality over quantity to stabilize the market,” he notes. While the U.S. may be easing climate regulations, regions like the EU and Japan have not. He adds that Taiwan’s recent electricity price freeze is counterproductive, weakening companies' incentives to enhance competitiveness. He cautions the government not to delay carbon pricing or relax environmental policies simply out of cost concerns. 

Lee also points out that tariffs may reshape global sustainability supply chains. Companies capable of disclosing reliable ESG data and demonstrating sustainability performance could gain new opportunities as supply chains restructure. 

ESG headwinds test corporate resilience 

AUO, one of Taiwan’s major display manufacturers, offers an example of how to weather ESG headwinds. Chief Sustainability Officer Ku Hsiu-hua (古秀華) says the company has implemented a dual-track transformation strategy, focusing on global supply chain resilience, digitalization, and sustainability mapping. 

From COVID-19 to China’s dual-control energy policy to the war in Ukraine, Ku says these stress tests have pushed AUO to build agile backup supply chains. “We’ve strengthened our ESG and risk management so that when something happens, a second supply line can quickly take over.” 

AUO Chief Sustainability Officer Ku Hsiu-Hua. (Photo: Daisy Chuang) 

Although most of AUO’s products are not currently on the U.S. tariff list, Ku notes the company must still monitor customer-side tariffs and upstream production costs. Using visual tools such as heat maps and radar charts, AUO works closely with suppliers and clients to adapt to shifting consumer demand. “In a volatile environment, businesses need to aim at a moving target,” she says. 

If cutting sustainability budgets becomes unavoidable, Lee advises companies to prioritize “defensive” ESG spending—such as occupational safety and energy efficiency—over promotional or peripheral actions. These core practices are less affected by trade policy and help reduce long-term operational costs. 

AUO joined the RE100 initiative in 2022, pledging to use 100% renewable energy by 2050 and to cut electricity use by 30% by 2030. The company’s emissions target has been approved by the Science Based Targets initiative (SBTi), and its supply chain is evaluated using clear ESG KPIs. “Once you commit to sustainability, you must follow through—or risk being accused of greenwashing,” Ku says. 

Despite rising cost pressures, AUO has improved energy efficiency to secure carbon fee discounts as low as NT$50 per tonne. While the global net-zero transition faces mounting obstacles, companies that stay the course on sustainability may still reduce operating costs and strengthen long-term resilience. 

'Trump’s First 100 Days' special series

• Trump’s first 100 days: Clean energy supply chains upended across Southeast Asia
• Trump’s first 100 days: U.S. climate rollbacks shake global green transition
• Trump’s first 100 days: Rethinking ESG as companies navigate tariff uncertainty