Baker Hughes: Steel and aluminum tariffs will have minimal impact

Baker Hughes expects slight impact from steel and aluminum tariffs: multiple factors help stabilize operations
Baker Hughes expects that the import tariffs imposed by the United States on steel and aluminum products will have a limited impact on its business. This judgment is mainly based on the following key factors:

1. Global procurement and flexible supply chain layout
As a leading global oil and gas service company, Baker Hughes has procurement channels covering multiple regions and flexible supply chain management capabilities. The company can reduce the risk of rising raw material costs by adjusting its procurement sources and turning to countries or regions less affected by tariffs, thereby effectively alleviating the direct impact of tariffs.

2. Strong cost control and cost transfer capabilities
Baker Hughes has strong cost management capabilities and absorbs some cost pressures by optimizing internal processes, improving operational efficiency, and promoting technological innovation. At the same time, the company also has the ability to pass on some cost increases to customers, especially in the context of stable or growing industry demand, which helps to maintain stable profit margins.

3. Rigid industry demand and macro-environment support
Although the prices of steel and aluminum may fluctuate due to tariff policies, the energy industry's demand for Baker Hughes' products and services is relatively rigid, especially in the context of accelerated global energy transformation and infrastructure investment, the market is generally showing a growth trend. The stable macroeconomic environment has also further enhanced the company's ability to resist external cost fluctuations.

Conclusion: Overall, Baker Hughes can hedge the relevant adverse factors to a large extent and achieve sustained and stable business development in the face of adjustments to steel and aluminum tariff policies with its global operation advantages, cost control capabilities and stable market demand.