ChampionX executive: New U.S. tariffs on metals will increase oilfield equipment prices.

A company official told reporters on Tuesday that ChampionX anticipates the new U.S. tariffs on imports of steel and aluminum will increase equipment costs for oilfield services firms.

U.S. president Donald Trump increased tariffs on imports of steel and aluminum on Monday, to a flat rate of 25% "without any exceptions or exclusions". He hopes this will help struggling industries in the United States. However, it also risks igniting a multifront trade war.

Steve Davoren's Regional Business Development Director, ChampionX, said on the sidelines the India Energy Week Conference that "80% of our revenues are North America. But for many of their equipment-based products, many of their components come from China, so they can have a significant impact on this."

He added that ChampionX was still committed to completing a merger with the top oilfield service company SLB by the end of first quarter.

Last month, Britain’s competition regulator announced that it had launched an investigation into the proposed $8 Billion deal to determine if it raised any competition concerns on UK markets. The deadline for the Phase 1 decision is March 27.

Davoren stated that "there are still a few jurisdictions who need to give final consent. We are waiting for final consent in Australia."

"So, that will flow through but it will be tight." (Reporting and writing by Mrinalika roy; editing by Christian Schmollinger, Kate Mayberry, and Florence Tan)

(source: Reuters)