By Mrinalika Roy
SINGAPORE (Reuters) – ChampionX expects new U.S. import tariffs on steel and aluminium to drive up equipment costs for oilfield service firms, a company official said on Tuesday.
U.S. President Donald Trump raised tariffs on steel and aluminium imports on Monday to a flat 25% “without exceptions or exemptions” in a move he hopes will aid the struggling industries in the United States but which also risks sparking a multi-front trade war.
“80% of our revenue is North America, but for a lot of the equipment based product line, a lot of their components comes out of China so they can definitely have an impact on that,” Steve Davoren, ChampionX’s regional business development director, told Reuters on the sidelines of the India Energy Week conference.
Separately, ChampionX is still committed to closing a merger deal with top oilfield services company SLB in the first quarter, he added.
Last month, Britain’s competition regulator said it had begun an inquiry into the proposed $8 billion deal and whether it raised competition concerns in any UK markets. It has set a deadline of March 27 for its Phase 1 decision.
“There’s still a few jurisdictions that need to give their final consent, we are awaiting final consent in Australia,” Davoren said.
“So that will flow through, but it will be tight.”
(Reporting by Mrinalika Roy; Writing by Florence Tan; Editing by Christian Schmollinger and Kate Mayberry)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.