Context:
Former U.S. President Donald Trump announced a plan to impose a 25% tariff on any country purchasing oil and gas from Venezuela. The tariff would apply to all trade those countries conduct with the United States. The measure is set to take effect from April 2, 2025, as per Trump’s statement on his social media platform.
Reason Behind the Move
- Trump cited Venezuela’s alleged role in sending “tens of thousands” of violent gang members to the U.S.
- He described Venezuela as being “hostile” to the United States and its values.
Impact on Global Trade
- The tariff could significantly impact China, the largest purchaser of Venezuelan crude oil.
- In February 2025, China imported around 503,000 barrels per day (bpd) of Venezuelan crude and fuel, accounting for 55% of Venezuela’s total exports.
- Other major importers include Spain, Italy, Cuba, and India.
Recent U.S. Actions
- Earlier this month, Trump ordered a 30-day wind-down of the license granted to Chevron Corp to operate in Venezuela, with operations set to cease by April 3, 2025.
- This was due to Venezuela’s failure to progress on electoral reforms and efforts to return migrants, according to Trump.
- U.S. imports of Venezuelan oil will also end in early April unless an extension is granted.
Political Context
- The move escalates tensions with Venezuela’s socialist government, led by Nicolas Maduro.
- Venezuela’s government has not yet responded to the announcement.
Legal Action Against Venezuelan Gangs
- Trump invoked the 1798 Alien Enemies Act to deport alleged members of the Venezuelan gang Tren de Aragua without waiting for immigration court removal orders.
