Exxon and Chevron Face Profit Declines Amidst Trump’s Tariffs

Sat Oct 18 2025 13:17:25 GMT+0300 (Eastern European Summer Time)

Major U.S. oil companies report significant drops in profits as tariffs and trade policies impact the industry.

Exxon Mobil and Chevron, the largest U.S. oil firms, have reported their lowest first-quarter profits in recent years, primarily due to President Trump’s trade tariffs that have reduced oil prices and increased material costs. As crude oil prices dip below $60 per barrel, companies are adjusting their production plans, leading to reduced spending across the industry.

In a concerning report for the oil and gas sector, Exxon Mobil and Chevron announced significant declines in their first-quarter profits as they prepare for the repercussions of President Trump's trade policies. These tariffs have not only dampened consumer confidence but have also contributed to a decrease in oil prices. As of this week, U.S. crude oil fell below the $60 per barrel mark, a critical price point for profitability in new drilling operations. This reflects a drop of about $20 per barrel compared to prices before Trump took office.

As tariffs create additional financial burdens—such as increased costs for steel and equipment—some companies are beginning to curtail their operations. Recent data from Baker Hughes indicated a 3% decrease in the number of rigs active in the Permian Basin, the largest oil-producing region in the U.S. Spending across the oil industry is expected to shrink this year, according to Baker Hughes' executives.

Chevron previously announced its intent to reduce spending in 2025 and is maintaining its production and capital spending forecasts despite the downturn. Eimear Bonner, Chevron's CFO, expressed confidence in their current strategy, noting that the company has weathered market fluctuations before.

The latest financial figures from both Chevron and Exxon are reflective of the market conditions prior to Trump's recent tariff announcements. Simultaneously, OPEC Plus surprised market observers by indicating a potential increase in oil output, further complicating an already challenging landscape for U.S. oil companies.