According to Liberty Energy's CEO, Ron Gusek, oilfield service providers are expected to face some minor decreases in earnings due to President Donald Trump's implementation of tariffs on steel imports. Trump announced a 25% tariff on steel and aluminum in March, with the possibility of additional tariffs on April 2. Concerns have been raised among executives that these tariffs could lead to inflation in the oilfield sector and increase drilling expenses. As a result, suppliers have started to raise prices on certain components used in the fracking process, like perforating guns for creating tunnels in shale rocks.

Liberty is passing on these increased costs to its customers, asking them to absorb the extra expenses. This may further impact the earnings of Liberty and other service providers by causing oil producers to reduce drilling activity to manage rising costs. Although there are concerns about a potential slowdown, Gusek mentioned that current customer feedback suggests a 2-3% increase in well completion costs. Despite the rising industry expenses, Liberty plans to enhance operational efficiency to counterbalance the effects of increased costs and maintain overall well costs for customers.