The Impact of U.S. Tariffs on Global Oil and Gas Trade

Mr. Choeib Boutamine

April 20, 2025

The Brent crude price dropped significantly following the announcement of the increase in U.S. tariffs on April 2, falling from $74 to $60 in just a few days.

It is unlikely that President Trump will completely back off from his decision to increase tariffs, as they align with his core convictions regarding international trade.

Various countries will have to find ways to adapt to the U.S. tariffs, but the effects will vary from one country to another, as the tariffs’ percentages differ. Tariffs will impact various industries to differing extents.

Additionally, U.S. tariffs on aluminum and steel imports from Europe and China will have a ripple effect, impacting the U.S. oil and gas sector and increasing inflation, as these materials are essential for building pipelines.

The current investment environment in the U.S. is marked by instability due to the lack of certainty from the U.S. administration, leading to a more cautious approach among investors.

Many will not be fully committed to investments, resulting in a hedging strategy. Moreover, the withdrawal from the Paris Agreement has slowed renewable investment opportunities in the U.S. while simultaneously encouraging further investments in fossil fuels.

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