In a significant trade policy announcement, former President Donald Trump revealed that a 25% tariff will be implemented on all imports from any nation purchasing oil or gas from Venezuela. This move also includes imposing new tariffs directly on Venezuela, as stated in a post on Truth Social. Trump noted that starting from April 2, countries buying oil from Venezuela would see a tariff applied to all their trades with the U.S.
The directive is likely to affect several countries, with China being notably impacted since it purchased 68% of Venezuela’s oil exports in 2023, according to a 2024 analysis by the U.S. Energy Information Administration. Other countries such as Spain, India, Russia, Singapore, and Vietnam are also major recipients of Venezuelan oil, indicating that these tariffs could have broad international ramifications.
Despite existing sanctions against Venezuela, the United States continues to engage in oil trade with the country. In January alone, the U.S. imported 8.6 million barrels of Venezuelan oil from a total monthly import of about 202 million barrels, as per the Census Bureau.
The Treasury Department has provided a lease extension to Chevron Corp., a U.S.-based company, allowing it to pump and export oil from Venezuela until May 27. This general license exempts Chevron from certain economic sanctions, permitting ongoing oil extraction.
In February, Trump had declared the cessation of Chevron’s operations in Venezuela, marking a critical financial source for Venezuela. The announcement drew retaliation from Venezuelan President Nicolás Maduro, who criticized the U.S. for what he claims are arbitrary and illegal actions aimed at destabilizing Venezuela’s economy and sovereignty.
Responding to the U.S. actions, Venezuela’s government expressed resilience, emphasizing its sovereignty and ongoing resistance to economic coercion.
Trump advocates for the tariffs, arguing they will bolster American manufacturing rather than exacerbate inflation or hinder growth, contrary to economists’ caution. This assertion coincided with Hyundai announcing a substantial investment in a new $5.8 billion steel facility in Louisiana, projected to create 1,400 jobs, reinforcing Trump’s stance that tariffs are beneficial.
Euisun Chung, Hyundai Motor Group’s executive chairman, expressed support for Trump’s policies during the announcement, underscoring their partnership in building the future.
Trump’s fresh tariff threats hint at a more aggressive stance against China, intending to restructure global trade norms. The administration has previously imposed comprehensive 20% tariffs on Chinese imports to curb illicit fentanyl trade. An additional 25% tariff could further intensify U.S.-China economic tensions.
Furthermore, Trump flagged Venezuela for a separate “secondary” tariff due to its association with the Tren de Aragua gang, linked with illegal immigration issues in the U.S.
April 2 has been designated by Trump as “Liberation Day,” signaling plans to align tariffs with those set by other nations. Trump’s agenda includes extending the 25% tariffs to key trade partners such as Mexico and Canada, along with increased tariffs on diverse imports, including steel, aluminum, autos, pharmaceuticals, lumber, computer chips, and copper.
Although the U.S. stock market saw gains on the announcement day, driven by investor hopes for more targeted tariffs, the S&P 500 index’s performance remains subdued this year, amid concerns about possible economic slowdowns and inflationary risks from trade disputes.
Maintaining cautious discretion regarding his trade strategies, Trump suggested that future tariff applications might be more moderate, indicating potential adjustments in response to international trade dynamics.