Trump tariff reversal could cut costs for US energy firms but will likely leave broader flows unchanged
#Trump tariffs #Supreme Court ruling #Energy costs #LNG plants #Trade policy #China relations #U.S. energy infrastructure #Steel and aluminum tariffs
📌 Key Takeaways
- Supreme Court struck down Trump's trade tariffs, reducing costs for U.S. energy firms
- Energy companies like Venture Global could benefit from reduced costs on imported components
- Some executives remain wary that the administration might find alternative ways to maintain tariffs
- The ruling is unlikely to significantly change LNG flows to China due to economic and strategic factors
📖 Full Retelling
Despite the potential cost savings for energy infrastructure projects, analysts predict minimal impact on broader energy flows, particularly to China. Ira Joseph, a senior research associate at Columbia University's Center on Global Energy Policy, explained that it makes more economic sense for China to continue trading U.S. LNG to Europe for arbitrage purposes or import cheaper oil-indexed LNG from the Middle East rather than increasing direct imports from the U.S. Alex Munton, director of global gas and LNG research at consulting firm Rapidan Energy, emphasized that Beijing treats its LNG market as strategic leverage with the U.S., and no LNG purchases were agreed as part of recent diplomatic deals. Samantha Santa Maria-Hartke, head of market analysis at Vortexa, added that China, which stopped taking deliveries of U.S. crude and LNG after imposing its own retaliatory tariffs, would not likely reverse course even if tariffs now ease, especially given the administration's resourcefulness in pursuing its agenda.
🏷️ Themes
Trade Policy, Energy Economics, International Relations
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Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Trump imposes new 10% global levy as SCOTUS strikes down sweeping tariffs Stocks end higher after SCOTUS tariff ruling, S&P 500 snaps two-week losing streak Gold rises, silver jumps after disappointing economic data, SCOTUS tariff ruling U.S. military operation in Iran "likely at this stage," Raymond James says (South Africa Philippines Nigeria) Trump tariff reversal could cut costs for US energy firms but will likely leave broader flows unchanged By Reuters Commodities Published 02/20/2026, 06:00 PM Updated 02/20/2026, 06:12 PM Trump tariff reversal could cut costs for US energy firms but will likely leave broader flows unchanged 0 By Georgina McCartney, Arathy Somasekhar and Curtis Williams HOUSTON, Feb 20 - The U.S. Supreme Court’s Friday decision to strike down trade tariffs imposed by President Donald Trump last year may ease costs for some oil producers and drillers, but experts and analysts told Reuters that broader energy flows would likely remain unchanged for now. The court’s ruling could reduce the cost of building LNG plants and other large-scale energy infrastructure that rely on modules and other parts manufactured in foreign countries hit by tariffs. Venture Global, for example, builds its LNG plants piecemeal in Italy before importing the components into the U.S. for final assembly. Trump’s tariffs raised costs for U.S. crude producers and service companies up the value chain, hitting imported equipment and materials. Many absorbed the additional costs; others tried to pass them on to customers. Venture Global did not immediately respond to a request for comment. "We were forecasting that we would have to pay around $5 to $6 million in tariff taxes in 2026, so that number will come down, hopefully," said Cam Hewell, president and CEO of Premium Oilfield Technologies, which manufactures and sells spare parts and equipment to oilfield companies. "We had to eat about 90% of the tax increase, so i...
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