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Roundtable Discusses Supply Chain Issues With 301 Tariffs


LEFT to RIGHT: Kartapurkh Khalsa, NOV; Catherine Van Way, Cummins; PESA Board Member Matt Armstrong, Baker Hughes, a GE company; Supply Chain Committee Chair Hope Anderson, NOV; PESA Advisory Board Member Doug Polk, Vallourec

PESA’s Supply Chain and International Trade Policy Committees discussed the escalation of up to 25% on Chinese import tariffs during a joint roundtable on May 22 at NOV.

Panelists included PESA Board Member Matt Armstrong, Head of Global Government Affairs, Baker Hughes, a GE company; Kartapurkh Khalsa, Senior Counsel & Director of Customs Compliance, NOV; and Catherine Van Way, Head of Government Relations, Cummins. PESA Advisory Board Member Doug Polk, Vice President – Industry Affairs, Vallourec, moderated.

Polk opened the meeting by providing an overview of the Section 301 tariffs and their impact on the industry. He noted that the tariffs have already negated the growth the industry saw following tax reform in 2017 and will continue harming economic growth as long as they are in place.

Armstrong discussed the tariff’s economic impact on the oilfield products and services sector and explained how companies like Baker Hughes, a GE company, have been able to adapt their supply chain to the new trade climate, despite facing increasing uncertainty over the future.

Van Way, who worked for Cummins in Beijing for two years, used that experience to help participants view the trade dispute from China’s perspective. She also discussed the domestic politics that shape trade policy and offered advice to those hoping to get more involved.

Finally, Khalsa explained the impact tariffs have on the supply chain. He described how each facet of the global supply chain took years to establish and cannot pick up and move to another country at a moment’s notice. He also described how a single disruption to the supply chain affects companies all the way down the line until the impact eventually reaches the consumer.

The panel also engaged with the audience throughout the program by answering their questions and involving them in the discussion. This roundtable was the latest of several that PESA has hosted on the topic of international trade and tariffs.





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