US to Impose 25% Tariff on Countries Buying Venezuelan Oil

By Staff, Agencies

In a significant move, President Donald Trump announced that the United States will impose a 25% tariff on all imports from any country that purchases oil or gas from Venezuela. This decision was made despite the US itself continuing to buy Venezuelan oil.

In a post on Truth Social, Trump explained that Venezuela has been "very hostile" towards the US, and that any country engaging in trade with Venezuela would be subject to the tariff on all imports to the US starting April 2.

This tariff would notably affect countries like China, which in 2023 purchased 68% of Venezuela’s oil exports, along with Spain, India, Russia, Singapore and Vietnam.

Ironically, the United States itself buys oil from Venezuela. In January, the US imported 8.6 million barrels from Venezuela out of the 202 million barrels it imported overall that month.

On the same day as Trump’s announcement, the US Treasury Department extended the lease for Chevron Corporation to pump and export Venezuelan oil, allowing the company to continue operations until May 27.

Venezuelan President Nicolás Maduro strongly condemned the US’s move, calling it an "arbitrary, illegal, and desperate measure" designed to weaken Venezuela’s development.

Maduro emphasized that the US’s economic sanctions and attempts to undermine Venezuela had failed, as the country had resisted with dignity and sovereignty.

Despite warnings from economists about potential negative effects on inflation and economic growth, Trump argued that the tariffs would bring back manufacturing jobs.

He cited Hyundai’s announcement to build a $5.8 billion steel plant in Louisiana as evidence of the tariffs' effectiveness, which would create 1,400 jobs.

The tariff threat, which includes a secondary tax due to Venezuela’s alleged connections to the Tren de Aragua gang, reflects the Trump administration’s broader economic stance.

The President has also pledged to impose tariffs on Mexico and Canada and to increase taxes on steel, aluminum, autos, pharmaceuticals, lumber, computer chips, and copper.

As the stock market saw an uptick on Monday, investors appeared to expect the tariffs to be more targeted than initially feared. However, concerns remain about the broader impact of a trade war on global economic stability, growth, and inflation.