New U.S. metals tariffs to drive up oilfield equipment costs, ChampionX exec says (updated)

ChampionX

11/02/2025 09:23

(Adds comments from paragraph 3)
    By Mrinalika Roy
       SINGAPORE, Feb 11 (Reuters) - ChampionX  CHX.O  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  SLB.N  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)
 ((Florence.Tan@thomsonreuters.com; Reuters Messaging:
florence.tan.thomsonreuters.com@reuters.net))