Trump tariffs threatens oil and gas investments in 2026: Report

US President Donald Trump’s sweeping tariffs are set to raise operating costs, disrupt supply chains, and weaken investment momentum for the oil and gas industry in 2026, a report published by Deloitte showed.

The energy industry relies heavily on global supply chains, and internationally sourced materials such as drilling rigs, valves, compressors, and specialised steel are central to their operations.

US tariffs on these components and other key input materials, including steel, aluminum, and copper, could increase material and service costs across the value chain by 4% to 40%, potentially compressing industry margins, the report said.

The US has imposed tariffs on a wide range of imports, including 10% to 25% on crude feedstocks not covered by the United States-Mexico-Canada Agreement and 50% on steel, aluminum, and copper.

The tariffs could reshape the oil and gas industry’s cost structure and add uncertainty around feedstock sourcing, Deloitte said in its report.

The ongoing disruptions could drive companies to prioritise supply chain resilience over lowest-cost sourcing and shift to domestic or non-tariffed suppliers and use foreign trade zones or tariff reclassification to manage duties, Deloitte said.