Trump to impose tariff on nations buying Venezuelan oil

US President Donald Trump announced Monday that he will impose steep 25 percent tariffs on imports from countries purchasing Venezuelan oil and gas, a move that could affect China, India, and other nations. The new levies aim to increase economic pressure on Venezuela and sow further uncertainty in global trade.

The tariffs, which could take effect as soon as April 2, target both direct and indirect buyers of Venezuelan oil, according to an order signed by Trump. The Secretary of State, in consultation with other US agencies, will determine whether the levy will be imposed.

Trump indicated the new tariff will be in addition to existing rates and could impact major oil customers like China and India, which receive significant amounts of oil from Venezuela. Experts note that Venezuela exported about 500,000 barrels of oil per day to China in February, and 240,000 barrels to the United States.

During a Monday press conference, Trump described April 2 as "Liberation Day," signaling that he will take a firm stance against what he perceives as unfair trade practices. He also hinted that sector-specific tariffs might be implemented around the same time but added that a more targeted approach could be taken.

The President justified the new "secondary tariff" by accusing Venezuela of sending criminals to the United States and being hostile to the country's values. Trump also noted that the tariff would expire one year after the last date a country imports Venezuelan oil, or sooner if the U.S. decides otherwise.

The announcement follows a suspension of deportation flights between the U.S. and Venezuela last month. Trump claimed that Caracas had not honored a deal to quickly receive deported migrants. However, Venezuela recently agreed to resume repatriations, with nearly 200 citizens deported back to Venezuela via Honduras.

In a separate development, the Trump administration extended US oil giant Chevron's deadline to cease operations in Venezuela until May 27. Chevron had been operating in the country under a sanctions waiver.

Trump's announcement comes as the U.S. prepares for broader tariffs, including sector-specific duties on automobiles, pharmaceuticals, and semiconductors. However, the White House suggested the rollout of these tariffs could be more targeted than initially planned.

A White House official indicated that "sector-specific tariffs may or may not happen April 2," adding that the situation remains "fluid." Trump also mentioned that he may "give a lot of countries breaks," though he did not elaborate further.

As deadlines approach, U.S. trade partners are in talks with the U.S. government. EU trade chief Maros Sefcovic is set to meet with American counterparts on Tuesday to discuss the upcoming tariffs.

The potential for a more focused tariff approach has provided some relief to financial markets. Treasury Secretary Scott Bessent noted that levies would likely target countries with trade imbalances with the U.S., referring to them as the "dirty 15."