Ahead of May 1st deadline, leading oil and gas association says exceptions should remain in place
Austin, Texas – The Texas Independent Producers & Royalty Owners Association (TIPRO) on Monday, April 30th pushed for President Donald Trump to continue temporary exceptions for steel and aluminum tariffs which are set to expire Tuesday, May 1, 2018. “TIPRO and our members have expressed concern over the tariffs on numerous occasions, emphasizing the unintended consequences for domestic energy producers. We maintain that the tariffs could significantly increase costs for domestic oil and natural gas producers that rely heavily on steel and aluminum products in their operations, including drilling equipment and pipelines,” said Ed Longanecker, president of TIPRO.
Earlier this year, the president approved tariffs of 25 percent on steel imports and tariffs of 10 percent on imported aluminum products. He later agreed to exempt Canada and Mexico from the tariffs as negotiations relating to the North American Free Trade Agreement (NAFTA) continued. “We understand that the Section 232 steel tariff exemption for Mexico has not yet been extended beyond May 1st as a result of positive NAFTA negotiations. As stated during the initial exemption announcement on March 8, 2018, due to the unique nature our nation’s relationship with Canada and Mexico, President Trump rightfully held off on tariffs pending successful negotiations,” observed Longanecker. “Given the energy industry’s heavy trade with the NAFTA countries, especially the import of steel products from Mexico, we believe it is not only in our industry’s best interest but also the interest of our entire country for the steel tariff exemption for Mexico to be reauthorized and extended until NAFTA is fully and successfully negotiated.”
TIPRO reiterates the powerful economic impact the U.S. oil and gas industry provides, and encourages President Trump to continue to pursue policies that advance U.S. energy dominance and further promote growth of this vital sector of the economy. Today TIPRO released its “2018 State of Energy Report,” which provides statistical data on employment, wages, businesses and production for the U.S. oil and natural gas industry. As confirmed in the TIPRO report, Texas once again led the country in all economic factors explored in the analysis. “As the nation’s leading producer of oil and natural gas, and most prominent benefactor of the president’s ‘Energy Dominance Agenda,’ the state of Texas would bear an inordinate burden of the steel and aluminum tariffs if exceptions are not continued, further hindering the industry’s recovery and the positive economic contributions of the oil and gas sector,” concluded Longanecker.