Trump Announces 25% Tariff on Countries Buying Venezuelan Oil, Escalating Trade Tensions

Trump Imposes 25% Tariff on Countries Purchasing Venezuelan Oil

Washington, D.C. – Former President Donald Trump announced Monday that he will implement a 25% tariff on all imports from any country that purchases oil or gas from Venezuela, further escalating economic tensions. The policy is set to take effect on April 2 and will also introduce new tariffs on Venezuela itself.

Trump made the announcement on Truth Social, stating that Venezuela has been “very hostile” to the United States. As a result, he plans to penalize any nation engaging in energy trade with the South American country by applying the tariff across all their trade with the U.S.

China Among Biggest Targets of New Tariffs

The move is expected to significantly impact China, which purchased 68% of Venezuela’s oil exports in 2023, according to a U.S. Energy Information Administration (EIA) report. Other countries affected include Spain, India, Russia, Singapore, and Vietnam, all of which are among Venezuela's top oil buyers.

READ: [Venezuela to Keep Producing Oil After U.S. Revokes Chevron License]

Ironically, the United States itself continues to import Venezuelan oil despite existing sanctions. In January 2024, the U.S. imported 8.6 million barrels from Venezuela, accounting for a small fraction of the 202 million barrels imported that month.

Chevron's Venezuela Operations in Limbo

Just hours before Trump's announcement, the U.S. Treasury Department extended Chevron Corp.’s license to pump and export Venezuelan oil until May 27. This exemption from economic sanctions allows the American oil giant to continue its operations in the country, despite Trump previously calling for an end to the Chevron-Venezuela partnership in February.

Maduro Slams U.S. Tariffs as “Illegal”

Venezuelan President Nicolás Maduro strongly condemned the new tariffs, calling them an “arbitrary, illegal, and desperate measure” meant to weaken Venezuela’s economy.

“For years, the fascist right, repudiated by the Venezuelan people, has promoted economic sanctions with the hope of bringing Venezuela to its knees,” the Venezuelan government said in a statement. “They failed because Venezuela is a sovereign country, because its people have resisted with dignity, and because the world no longer submits to any form of economic dictatorship.”

Will Tariffs Boost U.S. Manufacturing or Worsen Inflation?

Trump argues that these tariffs will help bring back manufacturing jobs to the U.S. However, economists warn that such policies could increase inflationary pressures and hinder economic growth by raising costs for businesses and consumers.

With the 2024 U.S. presidential election approaching, the move is seen as part of Trump’s broader “America First” trade agenda, which aims to reduce dependence on foreign goods and energy sources. However, it remains to be seen how global markets—and key trading partners—will react to this controversial tariff policy.