In the chaos of a trade war, most industries panic. But one sector might just thrive while others scramble. Energy. And we’re not talking about solar panels or wind turbines. It’s the old-school oil and gas companies that look ready to weather the storm better than the rest.
Here’s why.
Trump’s tariff war hits global supply chains where it hurts. Tech firms get slammed. Manufacturing faces rising costs. Farmers watch exports evaporate. But oil and gas? They’ve been given a pass. Literally. Crude oil and liquefied natural gas were quietly exempted from Trump’s sweeping tariffs. That means American energy producers can keep shipping to the world without the same obstacles others face.
At the same time, energy policy has shifted hard in their favor. The industry is seeing relaxed regulations, fast-tracked projects, and a White House that openly cheers them on. That kind of backing is rare during a time when most sectors are begging for breathing room.
Compare that to tech, which relies heavily on imported components. Or the auto sector, already weighed down by high material costs. Or agriculture, stuck in a brutal cycle of retaliation and lost market share. These industries are caught in the middle of the storm. Energy, especially fossil fuels, looks like it’s found a way around it.
It’s also worth noting that the energy sector often fares better during stagflation, a time when inflation is high, but economic growth stagnates. Stagflation tends to push up energy prices due to supply constraints or geopolitical issues. Since energy is essential, demand remains steady, and prices rise, which benefits energy producers. In contrast, other sectors often suffer from reduced consumer spending and higher operational costs, making them less resilient. That’s why energy stocks often outperform in stagflationary periods.
Of course, not every corner of the energy world is celebrating. Solar and wind have taken hits, especially with tariffs on imported components from China. But for the oil giants and natural gas exporters, this trade war feels more like a quiet win.
So while everyone else fights to survive, the energy sector just might power through.