(Reuters) -U.S. President Donald Trump’s sweeping tariffs are set to raise operating costs, disrupt supply chains and weaken investment momentum for the oil and gas industry in 2026, a report published by Deloitte showed on Wednesday.

WHY IT’S IMPORTANT

The energy industry relies heavily on global supply chains and internationally sourced materials such as drilling rigs, valves, compressors and specialized steel are central to their operations.

U.S. tariffs on these components and other key input materials, including steel, aluminum and copper, could increase material and service costs across the value chain by 4% to 40%, potentially compressing industry margins, the report said.

CONTEXT

The U.S. has imposed tariffs on a wide range of imports, including 10% to 25% on crude feedstocks

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