ISLAMABAD (PEN) : US President Donald Trump has announced a significant policy change, imposing a 25% tariff on imports from countries purchasing oil and gas from Venezuela. This move is set to affect several global economies, including major trade partners like China and India, further intensifying trade tensions worldwide.
The new tariff, which will take effect on April 2, 2025, targets both direct and indirect buyers of Venezuelan oil. The announcement follows Trump’s aggressive trade policies since returning to office earlier this year. Trump has consistently used tariffs as a diplomatic tool to influence both allies and adversaries, and this latest action expands his economic leverage.
Targeting Global Oil Trade
The tariffs will be enforced through an executive order, with the US Secretary of State coordinating with federal agencies to determine which countries will be affected. The levy will apply to nations that either import Venezuelan oil directly or receive it through intermediary countries. Trade experts highlight that Venezuela exports substantial quantities of oil to China, Spain, and the United States, with the country shipping 500,000 barrels per day to China and 240,000 barrels per day to the US in February alone.
Trump has called April 2 “Liberation Day” for the US economy, promising to implement “reciprocal tariffs” aimed at countering what he describes as unfair global trade practices. In his statement on Truth Social, Trump criticized Venezuela for sending criminals to the US and described the country as a “hostile nation” to American values.
Escalating Tensions with Venezuela
This announcement coincides with rising diplomatic and trade tensions between Washington and Caracas. Just weeks ago, the US suspended its deportation agreement with Venezuela after the government failed to uphold its commitments. Although Venezuela initially refused to accept deportation flights, the two nations reached an agreement over the weekend to resume repatriation, with nearly 200 Venezuelan migrants deported.
Trump’s tariff decision is also occurring amid the US granting Chevron a temporary sanctions waiver, allowing the oil giant to continue its operations in Venezuela until May 27, 2025.
Uncertainty Over Additional Tariffs
While the Venezuelan oil tariff is set to be implemented, the White House has hinted that additional sector-specific tariffs could be announced soon. Trump has suggested tariffs targeting industries such as automobiles, pharmaceuticals, and semiconductors, but there is uncertainty regarding the timing and scope of these measures. A senior White House official noted that the administration’s tariff plans remain fluid and that industry-specific duties may be imposed selectively.
Trump has indicated that he might offer some countries exemptions from these tariffs, although no specifics were provided on which nations could benefit. Financial markets reacted positively to the uncertainty, with hopes that the administration may roll out tariffs in a more selective manner.
The “Dirty 15”
US Treasury Secretary Scott Bessent revealed that only a small group of countries—roughly 15% of global trade partners—would be subject to the harshest tariffs. He referred to these nations as the “dirty 15,” accusing them of unfair trade practices and significant trade imbalances with the United States.
As the situation evolves, the EU’s top trade official, Maros Sefcovic, is set to visit Washington for discussions with US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, signaling the continued global focus on the evolving trade landscape.
With global trade dynamics shifting rapidly, the full impact of Trump’s latest tariff measures remains to be seen, but they are expected to further strain relations between the US and its major trading partners.
