PESA co-hosted a town hall event on January 24 discussing the damage that tariffs are having on the oilfield services and equipment sector, as well as the retail industry and agriculture. PESA Vice President Government Affairs, Tim Tarpley participated in the event, along with Clay Hensley, President, Cal Tex Energy Resources; Chris Kelley, Director of Federal Affairs, American Petroleum Institute; Melissa Stewart, Executive Director, Greater Houston Restaurant Association; Shane Williams, Director of Economic Development, Port of Houston; George Kelemen, President, Texas Retailers Association and Russell Boening, President, Texas Farm Bureau.
Member Companies Stallion Oilfield Services and Sunbelt Steel were also in attendance.
The Trump Administrations tariffs on steel and aluminum under Section 232 of the Trade Expansion Act of 1962, as well as the tariffs imposed against imports from China under Section 301 of the Trade Act of 1974, have resulted in massive costs for businesses in the state. A recent study shows Texans have paid more than $364 million in tariffs on products subject to the rules, which is more than 12 times what was paid on the same products last year.
Regarding the effect of the tariffs on the oilfield services and equipment sector, “The goal of the industry and policymakers should always be to keep high quality domestic manufacturing here in the United States,” Tarpley said. “PESA is very concerned that despite the best intentions, section 232 and 301 tariffs may have the opposite effect in relation to many areas of the energy industry.”
PESA supports a balanced approach to tariffs and trade that both addresses illicit practices and considers economic implications for U.S. businesses. Section 232 and 301 tariffs will disrupt industry supply chains, resulting in increased costs and inefficiencies, while retaliatory measures can dissuade importers from purchasing U.S. petroleum equipment and products, harming service companies and their employees.
For more information on this event or PESA’s position on tariffs, please contact PESA Vice President Government Affairs, Tim Tarpley.