Donald Trump mentioned the US would impose a 25 per cent tariff on all imports from any nation that buys oil from Venezuela, a transfer that might roil crude markets and sharply elevate levies on items from China and India.
The announcement on Monday got here days forward of the president’s deliberate unveiling of a brand new tariff regime on US buying and selling companions and amid a chaotic commerce coverage rollout marked by reversals and U-turns.
In a submit on Reality Social, Trump mentioned he was imposing the tariff for “quite a few causes”, alleging that “Venezuela has purposefully and deceitfully despatched to the USA, undercover, tens of hundreds of excessive degree, and different, criminals, a lot of whom are murderers and other people of a really violent nature”.
Venezuela exported 660,000 barrels a day of crude globally final 12 months, in line with consultancy Kpler. China, which has already been hit with 20 per cent tariffs from Trump this 12 months, is among the many high consumers, alongside India, Spain and Italy.
Talking to reporters in a while Monday, Trump mentioned that the 25 per cent tariffs on consumers of Venezuelan crude would come along with any current levies.
“That’s on high of current tariffs — sure,” Trump mentioned.
The US itself imported about 230,000 b/d from Venezuela in 2024, making the South American nation its fourth-biggest provider final 12 months.
The newest escalation of Trump’s commerce struggle comes simply days after Caracas agreed to start receiving planeloads of deported migrants from the US, in a concession to the US president.
The transfer dangers stoking turmoil within the oil market, one thing the White Home has to date been eager to keep away from in a bid to stop provide disruption from elevating petrol costs for American motorists. Brent crude rose 1.3 per cent following the announcement.
“If we see Venezuelan provide popping out of the market, which means much less international provide, which implies oil costs go up,” mentioned Matt Smith, lead oil analyst at Kpler. “That will get handed on to costs of the pump, which is the other of President Trump’s objectives.”
The US president referred to Monday’s unprecedented transfer as a “secondary tariff” and mentioned it might take impact from April 2, which he has dubbed “liberation day”, when reciprocal levies on different international locations will even come into power.
Analysts mentioned international locations had been more likely to minimize imports reasonably than danger the tariffs.
“We’ve by no means [before] seen secondary tariffs however a literal interpretation of Trump’s Reality Social assertion suggests it might result in a major disruption to Venezuelan exports,” mentioned Fernando Ferreira, director of geopolitical danger at consultancy Rapidan Vitality.
“Absent clarification from the administration on potential exemptions, I believe most international locations will self-sanction to keep away from across-the-board tariffs on all exports to the US,” he added.
Earlier this month, the US Treasury cancelled Chevron’s licence to function in Venezuela, which is underneath broad sanctions, ordering the California-based oil group to wind down its operations inside 30 days.
On Monday, the Treasury prolonged the deadline for Chevron to wind down its oil manufacturing within the nation till Could 27.
Chevron’s licence allowed it to export about 200,000 b/d final 12 months, which Venezuela’s democratic opposition mentioned contributed to funding repression by President Nicolás Maduro’s authorities. Chevron declined to touch upon Monday’s tariff announcement. The Venezuelan authorities didn’t reply to a request for remark.
As a part of Venezuela’s settlement to renew accepting deportees from the US, a flight carrying 199 individuals landed close to Caracas on Sunday.
Trump has in latest weeks pushed to deport lots of of alleged members of the Venezuelan Tren de Aragua gang, which the US has designated a terrorist organisation.
In his Reality Social submit on Monday, the president referenced the gang and mentioned Venezuela had been “very hostile to the USA and the Freedoms which we espouse”.
Earlier this month, the US deported some alleged gang members to El Salvador, the place President Nayib Bukele had agreed to carry them within the nation’s “superb jails at a good worth that will even save our taxpayer {dollars}”.
On Monday, the Division of Justice mentioned it might deport three alleged Tren de Aragua members to Chile.
The Maduro authorities, which has usually used the exodus of its residents as leverage in negotiations with Washington, mentioned that migrants had been “kidnapped” and despatched to El Salvador.
