HOUSTON, April 4 (Reuters) -

U.S. oilfield service firms are bracing for a hit as

President Donald Trump's tariffs throw supply chains into

disarray and tumbling oil prices set the stage for a drop in

drilling activity, analysts and financial firms said on Friday.

Financial services firm Morningstar ( MORN ) lowered its fair value

estimates for the big three oilfield service firms, SLB,

Halliburton ( HAL ), and Baker Hughes ( BKR ), by 3-6% following

Trump's tariff announcement on Wednesday.

Those firms could see a 2-3% dip in oilfield revenue in

2025. For each dollar lost in revenue, Morningstar ( MORN ) estimates the

big three could see $1.25-$1.35 in lost operating profit.

"Pipes, valve fittings, sucker rods are going to be

impacted by tariffs, which will be felt by the big three in

particular where they have multi-national sourcing strategies,"

said Rystad Energy's vice president of supply chain research,

Ryan Hassler.

Shares of SLB, the world's largest oil services firm, sank

12% on Friday to $34.60, its lowest since September 2022,

according to data from LSEG. Halliburton ( HAL ) stock slumped 10% to

just over $20, and Baker Hughes ( BKR ) tumbled 11% to around $36.40.

Trump introduced reciprocal tariffs on Wednesday,

implementing a 10% baseline duty on most U.S. imports, with some

countries, including China, facing significantly higher levies.

Oil prices slumped on Friday after China, the world's top

crude importer, ramped up tariffs on U.S. goods, in the most

serious escalation in a global trade war that has investors

worried about a recession, and a subsequent dip in oil demand.

Crude oil futures, down by more than 8% in afternoon

trading, were heading for their lowest close since the middle of

the COVID-19 pandemic in 2021. Global benchmark Brent crude

tumbled as low as $64.03 a barrel while U.S. West Texas

Intermediate crude (WTI) hit a low of $66.90.

If a lower $60 per barrel range for WTI holds for a

sustained period, activity in the U.S. shale space could decline

towards the second half of the year, Rystad's Hassler said.

Investment bank JP Morgan said it now sees a 60% chance of

the global economy entering recession by year-end, up from 40%

previously.

"The curtain appears to be falling on global trade as we

knew it, and the immediate future is worryingly uncertain...The

threat of recession is front of mind, and investors are

retreating from risk assets such as oil and equities," said

Tamas Varga, analyst at PVM Oil Associates.