On Monday, President Donald Trump revealed a new trade measure that could significantly impact global oil markets. In an announcement shared via Truth Social, Trump stated that nations purchasing oil or gas from Venezuela will face a 25% tariff on all trade with the United States.
This decision is part of a broader strategy to apply economic pressure on countries engaged in deals with the Venezuelan government, led by Nicolás Maduro, which continues to face stringent sanctions from the U.S. government.
CNN reports that this move is expected to escalate tensions, particularly with countries heavily dependent on Venezuelan oil exports.
New Tariff Threatens to Reshape Energy Alliances and Trade Flows
President Donald Trump announced on Monday that any country purchasing oil or gas from Venezuela will face a 25% tariff on all trade with the United States.
The tariff is part of Trump’s broader strategy to exert economic pressure on nations involved in oil deals with the Venezuelan government, led by Nicolás Maduro, who has been under heavy U.S. sanctions.
In a statement shared via his Truth Social network, Trump explained his decision :
Venezuela has been very hostile to the United States and the Freedoms which we espouse. Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country.
The tariff is set to take effect on April 2, coinciding with other tariffs Trump plans to implement that day. These include retaliatory tariffs against several countries, signaling a significant shift in U.S. trade policy.
This move follows reports that Trump may delay tariffs previously announced on imports like pharmaceuticals, cars, and lumber.
Trump’s threats have not significantly impacted market performance, with stocks trading higher on Monday.
However, analysts are closely monitoring how these tariff measures could influence global trade, particularly in the oil sector.
A Shift in u.s. Policy Towards Venezuela
Venezuela was once among the top foreign suppliers of oil to the U.S., with the Commerce Department reporting that the U.S. imported $5.6 billion worth of oil and gas from Venezuela in 2024.
However, these imports have been a point of contention, especially after the Biden administration reinstated sanctions against Venezuela in April 2024 following allegations of undemocratic practices by Maduro.
While sanctions were lifted briefly in 2023 to allow for limited imports, the reinstatement of these measures has done little to prevent Venezuelan oil from reaching the U.S. A joint-venture license granted to Chevron has allowed Venezuelan oil to flow into the U.S., although the license was originally set to be revoked on April 3.
After a meeting between Trump and Chevron CEO Mike Wirth, the U.S. Treasury Department announced it would extend the license until May 27, avoiding the immediate disruption of Venezuelan oil imports.
The Global Impact: A Direct Hit to China
Venezuelan oil is particularly significant to China, the largest importer of Venezuelan crude. In 2024, China imported 351,000 barrels per day of Venezuelan oil, more than any other nation. The U.S. followed behind, receiving 228,000 barrels per day.
This highlights the strategic importance of Venezuela’s oil to China, especially as the U.S. continues to target Chinese trade.
In response to Trump’s announcement, Matt Smith, lead oil analyst at Kpler, remarked:
This announcement by the Trump administration appears to be one more action targeting China.
The U.S. already has a 20% tariff on all Chinese goods, with an additional 25% tariff on steel and aluminum. If China continues purchasing Venezuelan oil, the total tariff on Chinese goods entering the U.S. could climb to 45%, with even higher taxes on specific imports.
China has firmly opposed these measures. Guo Jiakun, spokesperson for the Chinese Ministry of Foreign Affairs, urged the U.S. to stop interfering in Venezuela’s internal affairs and to lift its “illegal” unilateral sanctions.
There are no winners in a trade war or tariff war – Guo said,
Adding that increased tariffs would ultimately harm American businesses and consumers.
