President Donald Trump said Monday he would be placing a 25 per cent tariff on all imports from any country that buys oil or gas from Venezuela as well as imposing new tariffs on the South American country itself. In a Truth Social post, Trump said Venezuela has been “very hostile” to the US and countries purchasing oil from it will be forced to pay the tariff on all their trade to the US starting April 2. The tariffs would most likely add to the taxes facing China, which in 2023 bought 68 per cent of the oil exported by Venezuela, according to a 2024 analysis by the US Energy Information Administration. Spain, India, Russia, Singapore and Vietnam are also among the countries receiving oil from Venezuela, the report shows. But even the United States ” despite its sanctions against Venezuela ” still imports oil from that country.
In January, the United States imported 8.6 million barrels of oil from Venezuela, according to the Census Bureau. And on Monday, the Treasury Department issued an extension for US-based Chevron Corp.`s lease to pump and export Venezuelan oil until May 27. The extension, known as a general license, exempts the country from economic sanctions and allows it to continue to pump oil. In February, Trump had announced an end to the Chevron-Venezuela relationship, in what became a financial lifeline for the South American country. Trump`s latest tariffs threat suggests the administration may be willing to take bolder moves against China in its efforts to rewrite the guidelines of the global economy. The Trump administration has already levied universal 20 per cent tariffs on imports from China as an effort to crackdown on the illicit trade in fentanyl, but another 25% import tax could further escalate tensions between the world`s two largest economies.
Trump said Venezuela will face a “Secondary” tariff because it is the home to the gang Tren de Aragua. The Trump administration is deporting immigrants that it claims are members of that gang who illegally crossed into the United States. The US president told reporters during a public portion of a Cabinet meeting Monday that the tariffs related to Venezuela were “long in the making,” as he promised forthcoming import taxes on autos and pharmaceutical drugs that he has pledged will lead to more investment and factories inside the United States. Trump has labelled April 2 as “LIBERATION DAY” based on his still unclear plans to roll out import taxes to match the rates charged by other countries, as well as fully levy 25 per cent tariffs against Mexico and Canada, the two largest US trading partners.
The Republican president has also increased his 2018 tariffs on steel and aluminum to 25 per cent for all imports. Trump told reporters on Friday that there would be “flexibility” in his tariffs even as he has opposed granting exemptions to his import taxes. The US stock market had been climbing on Monday as investors expect the tariffs to be more targeted than they earlier feared. Still, the S&P 500 index is down so far this year out of concerns that a trade war could hinder economic growth and increase inflationary pressures. Trump said his social media post on Monday would serve as notification of this policy to the Department of Homeland Security and other law enforcement.
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