Units of Enterprise Products Partners (EPD 1.05%) plunged 12.4% in April, according to data provided by S&P Global Market Intelligence. Weighing on the master limited partnership (MLP) were concerns that tariffs could impact its business, given its leadership in exporting hydrocarbons. The midstream giant also reported its first-quarter financial results last month.

Tariffs are causing chaos in global trade

The Trump administration unveiled its reciprocal tariff plans early last month. They were much higher than most economists expected. That caused significant volatility in the stock market and had a meaningful impact on global trade.

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As a leader in exporting U.S. hydrocarbons, Enterprise Products Partners is seeing firsthand the impact tariffs are having on global trade. Co-CEO Jim Teague commented on the situation during the MLP's first-quarter earnings conference call last month. He noted:

Stating the obvious, a lot is going on that is causing nothing short of chaos around the world. Energy is not excluded. No one can tell how all the pieces land.

However, while there's a lot of near-term uncertainty regarding how tariffs will impact hydrocarbon exports, which are crucial to Enterprise Products' business, Teague commented, "We must fall back on what we think we know."

We know that President Trump ran on a pro oil and gas platform for his second term. Given that, Teague said, "Amid all this uncertainty, I have the core belief that when the dust settles in the game of this administration's policies, laws and regulations [are] intended to promote U.S. energy, not just for the next four years, but for decades."

That bodes well for Enterprise Products Partners, which is investing heavily to expand what is already one of the country's largest hydrocarbon export platforms. The company has $6 billion of growth capital projects scheduled to enter commercial service this year and at least another $1.6 billion next year. Those projects include building its new Neches River Terminal, expanding the LPG loading capacity at the Enterprise Hydrocarbons Terminal, and enhancing its Morgan's Point ethylene terminal.

These commercially secured projects will significantly boost the MLP's earnings and cash flow over the next two years. Its growth rate should accelerate from the 5% increase in distributable cash flow it delivered in the first quarter. That will give it more fuel to continue increasing its high-yielding distribution (nearly 8% yield after last month's slump). Enterprise has raised that payout for 26 straight years.

A great time to buy

Units of Enterprise Products Partners tumbled last month due to the uncertain impact of tariffs on its hydrocarbon export business. While there's increased uncertainty in the near term, the tariff endgame is to boost U.S. exports over the long term, including hydrocarbons. Because of that, Enterprise Products Partners should ultimately benefit from the policy shift.

In the meantime, its slump last month has the MLP trading at an even more attractive level, making it look like a compelling buy for income and upside potential.