GlobalData Poll Says US Tariffs Likely to Impact Oil, Gas Sector

While campaigning for his second-term, President Trump positioned the expansion of oil and gas production as a central pillar of his agenda. Since assuming office, he has introduced an expanding set of tariffs on various commodities and nations, all geared towards protecting America’s economic interests. 

On the campaign trail, he suggested imposing a broad global import duty, along with tariffs exceeding 60% on Chinese goods. However, the rollout was hampered by delays and frequent policy reversals, with each new declaration triggering global backlash that amplified market volatility and created substantial obstacles to economic growth. 

Since the year begun, the administration has alternated between raising and reducing tariffs on multiple countries, further intensifying instability. Although crude oil, natural gas, and refined petroleum imports have largely remained exempt, concerns that tariffs could spur inflation, slow economic expansion, and heighten trade frictions have placed downward pressure on oil prices. 

Amid these developments, a poll was conducted by GlobalData, focused on gauging how President Trump’s tariffs might influence the outlook for the international oil and gas sector. 

The survey, which was carried out between May and August of this year, gathered 204 responses. Results were varied, reflecting the prevailing uncertainty within the industry regarding the potential effects of tariffs on both the supply and demand of energy. A report shows that slightly more than one-quarter of participants believed the consequences could persist for 6 months to a whole year. 

A slightly smaller proportion of respondents also admitted to believing that the impact might endure for up to 3 years. Additionally, 14% of respondents held the opinion that this impact could last for a 5-year period, noting that an extended impact could disrupt the long-range investment strategies of firms. 

From the above, we can agree that all respondents recognized the seriousness of the issues plaguing the sector as it strived to strike a balance between profitability and long-term growth strategies. 

In addition, 22% of the participants were unable to provide a clear stance, emphasizing that the issue may be difficult to assess. The level of ambiguity observed has risen significantly across the U.S. oil and gas sector this year due to tariff policies. This has, in turn, made formulating new projects increasingly difficult given the uncertain prospects for downstream industries. 

Finally, roughly 13% of respondents to the survey believed the effect would be temporary, lasting no more than six months. This could hold true if policy directions remain steady. 

It is likely that the mixed reactions and uncertainty surrounding the tariff environment can also be extrapolated to other commodities like copper and gold where companies like Torr Metals Inc. (TSX.V: TMET) have interests. How they cope with these headwinds could shape their medium and long-term trajectory. 

NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET 

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