“Trump’s tariffs on allies’ steel could slow, halt pipeline projects”
President Trump’s Thursday announcement his administration would implement a 25% tariff on imported steel from allies Canada, Mexico and the European Union, caused the U.S. oil and gas industry to collectively gasp.
…“The three key takeaways (on Trump implementing steel and aluminum tariffs on imports from Canada, Mexico and EC) were … project costs, exemptions uncertainty and need for more oil and gas pipelines,” Nicolas Adrian McTyre, counsel in the Austin, Texas, office of law firm Thompson & Knight, told Kallanish Energy. McTyre previously was as a trial attorney for the Federal Energy Regulatory Commission (FERC).
Projects on the margin could fold
“This tariff could tip the scales on projects that are on the economic margin, having the effect of either delaying or cancelling certain projects. Second, even with the steel tariff exemptions process being developed by the U.S. Commerce Department, the exemptions process is a new regulatory hurdle.”
Finally, McTyre told Kallanish Energy looking at the additional oil and natural gas expected to come to market and be exported in the next few years “this tariff is not going to help those efforts.”