Donald Trump said the US will impose a 25% tariff on all imports from any country that purchases oil from Venezuela.
Monday’s announcement came ahead of the president’s unveiling of a new tariff system on US trading partners, and the development of a chaotic trade policy marked with reversals and U-turns.
In a post about the True Society, Trump said he is imposing tariffs for “a number of reasons,” claiming that “Venezuela is intentionally and deceived, secretly deceived by the United States, and that tens of thousands of high levels, other criminals are murderers and people of a very violent nature.”
According to consultant Kpler, Venezuela exported 660,000 barrels a day worldwide last year. China, already hit by 20% tariffs from Trump this year, is one of the top buyers along with India, Spain and Italy.
Speaking to reporters later Monday, Trump said a 25% tariff on Venezuelan crude oil buyers would be in addition to existing taxes.
“It’s on top of existing tariffs – yes,” Trump said.
The US itself imported about 230,000 b/d from Venezuela in 2024, making the South American nation the fourth largest supplier last year.
The latest escalation of Trump’s trade war comes just days after Caracas agreed to begin receiving a flat-faced collection of deported immigrants from the US in a concession to the US president.
This move risks causing chaos in the oil market. This has been the White House so far wanted to avoid supply disruptions to prevent the price of gasoline for American drivers. Brent crude rose 1.3% since the announcement.
“When I see Venezuela supply coming out of the market, it means there’s a low global supply, which means oil prices will rise,” said Matt Smith, Kpler’s lead oil analyst. “That will be carried over to the price of the pump, the opposite of President Trump’s goal.”
The US president called Monday’s unprecedented move “secondary tariffs” and said it would take effect from April 2nd.
Analysts said the country is likely to cut imports rather than risk tariffs.
“We have never seen secondary tariffs before, but the literal interpretation of Trump’s true social statement suggests that it could lead to a significant disruption in Venezuela’s exports.”
“Without clarification from the administration regarding potential exemptions, most countries are likely to be independent to avoid full tariffs on all exports to the US,” he added.
Earlier this month, the US Treasury cancelled its Chevron license to operate in Venezuela. Venezuela is under widespread sanctions and ordered California-based oil groups to abolish the operations within 30 days.
On Monday, the Treasury Department extended the deadline for Chevron to reduce oil production in the country until May 27th.
Chevron’s license last year allowed it to export approximately 200,000 b/d. Venezuela’s democratic opposition has contributed to President Nicolas Maduro’s government’s financing control. Chevron declined to comment on Monday’s tariff announcement. The Venezuelan government did not respond to a request for comment.
A flight carrying 199 people landed near Caracas on Sunday as part of a Venezuela agreement to resume accepting US exiles.
Trump has been urged in recent weeks to deport hundreds of members of the Venezuela Tren de Aragua gang, which the US designated as a terrorist organization.
In his true social post on Monday, the president referenced the gang and said Venezuela was “very hostile to the US and the freedom we support.”
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Earlier this month, the US deported suspected gang members to El Salvador. There, President Naive Bukel agreed to hold “a very good prison at a reasonable price to save taxpayer dollars.”
On Monday, the Justice Department said three Tren de Aragua members would be deported to Chile.
The Maduro government said that while it often used citizens’ departures in negotiations with Washington, immigrants were “invited” and sent to El Salvador.
