Finance
Trump tariff reversal could cut costs for US energy firms but will likely leave broader flows unchanged
Published by Global Banking & Finance Review®
Posted on February 20, 2026
4 min readLast updated: February 20, 2026
Quick Summary
SCOTUS struck down Trump’s 2025 tariffs, trimming costs for U.S. LNG builders and oilfield suppliers. Savings may improve budgets, but analysts see little change to global LNG flows, especially with China.
Supreme Court Tariff Reversal Eases U.S. Energy Costs; LNG Flows Steady
By Georgina McCartney, Arathy Somasekhar and Curtis Williams
Impact on Energy Costs and LNG Trade
HOUSTON, Feb 20 (Reuters) - The U.S. Supreme Court's Friday decision to strike down trade tariffs imposed by President Donald Trump last year may ease costs for some oil producers and drillers, but experts and analysts told Reuters that broader energy flows would likely remain unchanged for now.
Cost Relief for Infrastructure and Drillers
The court's ruling could reduce the cost of building LNG plants and other large-scale energy infrastructure that rely on modules and other parts manufactured in foreign countries hit by tariffs. Venture Global, for example, builds its LNG plants piecemeal in Italy before importing the components into the U.S. for final assembly. Trump's tariffs raised costs for U.S. crude producers and service companies up the value chain, hitting imported equipment and materials. Many absorbed the additional costs; others tried to pass them on to customers.
Venture Global did not immediately respond to a request for comment.
Company Commentary and Budgeting
"We were forecasting that we would have to pay around $5 to $6 million in tariff taxes in 2026, so that number will come down, hopefully," said Cam Hewell, president and CEO of Premium Oilfield Technologies, which manufactures and sells spare parts and equipment to oilfield companies.
"We had to eat about 90% of the tax increase, so it won’t have a big impact on what we charge customers. But it will free up more cash flow for research and development, employee raises, and cash back to investors," he added.
The ruling could also help companies budget more precisely and better understand drilling costs, said Kirk Edwards, president of Texas-based producer Latigo Petroleum.
Tariffs That Remain in Place
The Supreme Court's decision did not remove 50% tariffs on steel and aluminum imposed last year. Some executives remain wary the administration could find ways to maintain tariff costs.
Prospects for New Tariff Schemes
"I have some fear that the administration will quickly bypass Congress and cook up another tariff scheme that mimics the current one…and never change the amounts we have to pay," Hewell said.
Potential 10% Global Tariff Window
Trump suggested as much himself, saying he would impose a 10% global tariff for 150 days.
"We have alternatives, great alternatives," Trump said.
Why LNG Flows Likely Stay Flat
LNG FLOWS LIKELY TO REMAIN UNCHANGED
While the court's ruling will theoretically reduce the cost of constructing LNG plants, it is unlikely to result in China taking in more LNG from the U.S. because of simple economics, said Ira Joseph, a senior research associate at Columbia University's Center on Global Energy Policy.
China-Europe Arbitrage Dynamics
"It makes more sense for China to continue to trade on U.S. LNG to Europe to make an arbitrage on the shipments or import cheaper oil-indexed LNG from the Middle East," Joseph said.
Beijing’s Strategic Posture
"Beijing now treats its LNG market as strategic leverage with the U.S., and no LNG purchases were agreed as part of the deal late last year. Beijing is unlikely to offer purchases or make concessions, even if tariffs now ease," said Alex Munton, director of global gas and LNG research at consulting firm Rapidan Energy.
Policy Uncertainty and Industry Concerns
"If this administration has proven anything, it's that it is extremely resourceful in trying to get its agenda accomplished, they will look for alternative options," said Samantha Santa Maria-Hartke, head of market analysis at Vortexa.
China, which stopped taking deliveries of U.S. crude and LNG after it imposed its own retaliatory tariffs against the U.S., would not likely reverse course, she added.
(Reporting by Georgina McCartney, Arathy Somasekhar and Curtis Williams in Houston; Editing by Nathan Crooks and David Gregorio)
Key Takeaways
- •The Supreme Court struck down recent Trump-imposed tariffs, easing cost pressure on U.S. energy infrastructure and oilfield suppliers.
- •Modular LNG projects, such as Venture Global’s, could see lower build costs from reduced tariffs on imported components.
- •Executives say savings will boost cash flow for R&D, wages and investors, with limited impact on customer pricing.
- •Analysts expect little near‑term change in global LNG trade flows; China is likely to keep arbitraging U.S. cargoes to Europe.
- •Steel and aluminum tariffs remain, leaving some uncertainty over full cost relief for energy projects.
Frequently Asked Questions about Trump tariff reversal could cut costs for US energy firms but will likely leave broader flows unchanged
1What is the main topic?
The article analyzes how the Supreme Court’s decision to void recent Trump tariffs could lower costs for U.S. energy firms while leaving broader global LNG and crude flows largely unchanged.
2Who benefits most from the tariff reversal?
U.S. LNG developers and oilfield equipment suppliers that import modules and parts—such as those used by Venture Global—are likely to see the biggest cost relief.
3Will global LNG trade patterns change?
Analysts say not materially in the near term. China is expected to keep arbitraging U.S. LNG to Europe or buy cheaper oil‑indexed cargoes from the Middle East despite lower U.S. build costs.
