In a move that could disrupt global oil markets, U.S. President Donald Trump announced on Monday that he would impose a 25% tariff on countries purchasing oil and gas from Venezuela, a decision that experts warn could affect major buyers, including China and India. Venezuela, which has long been a contentious figure in U.S. foreign policy, continues to export oil to a range of nations, including the U.S., Spain, China, and India.
In a statement posted on his social media platform, Trump emphasized that Venezuela’s relationship with the United States had been hostile and that the country’s actions were counter to American values. “Venezuela has been very hostile to the United States and the freedoms which we espouse,” he wrote. “Therefore, any country that purchases oil and/or gas from Venezuela will be forced to pay a tariff of 25% on any trade they do with our country.”
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The 25% tariff, targeting both direct and indirect buyers of Venezuelan oil, is set to take effect on April 2, according to an executive order signed by Trump. The tariff will remain in place for one year from the last date a country imports Venezuelan oil, unless the U.S. government decides to lift it sooner.
This new levy is expected to hit countries like China and India, which are among the top buyers of Venezuelan oil. In late 2023 and early 2024, India was the largest importer of Venezuelan crude, with imports reaching over 254,000 barrels per day in January 2024. This accounted for nearly half of Venezuela’s total oil exports that month. Meanwhile, in February 2024, Venezuela exported around 500,000 barrels per day to China, while the U.S. imported 240,000 barrels.
India, in particular, has been a significant buyer of Venezuelan oil, importing 22 million barrels in 2024, which made up about 1.5% of its total crude oil imports. The new tariff could force India to seek alternative suppliers, potentially increasing oil prices in Asia.
The announcement comes after tensions between the U.S. and Venezuela escalated, especially following the suspension of a deportation agreement last month. However, both nations reached an agreement over the weekend to resume deportations, and nearly 200 Venezuelan citizens were repatriated to their home country.
The U.S. move to impose a tariff on Venezuelan oil sales could have far-reaching implications for global oil markets and trade, increasing uncertainty for buyers and sellers alike in Asia and beyond.
(This story is published from a syndicated feed)
