WASHINGTON: US President Donald Trump said Monday he would levy a 25 percent tariff across the board on any country buying oil or gas from Venezuela, as he escalates trade wars with a number of US adversaries and allies.
In a post on his Truth Social platform on Monday, Trump justified the move by accusing Venezuela of being “very hostile to the United States and the Freedoms which we espouse.”
He warned that “any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country.”
The tariff is set to come into effect on 2 April 2025, which Trump referred to as “Liberation Day in America.”
Allegations against Venezuela
The decision comes amid Trump’s broader efforts to crack down on Venezuelan migrants in the United States.
He claimed, without presenting evidence, that the Venezuelan government had “purposefully and deceitfully” sent thousands of criminals, including members of the Tren de Aragua gang, into the US.
“Among the gangs they sent to the United States is Tren de Aragua, which has been given the designation of ‘Foreign Terrorist Organization,’” Trump stated.
He added that the US was in the process of deporting these individuals back to Venezuela, calling it “a big task.”
Trump’s administration has been engaged in a legal battle over its deportation policies. According to The Washington Post, a US District Court judge on Monday declined to lift a restraining order preventing the administration from using the Alien Enemies Act of 1798 to carry out mass deportations of Venezuelans.
Impact on global trade
Trump’s latest tariff measure could have significant implications for global energy markets, particularly for countries that recently resumed imports of Venezuelan crude.
India, one of Venezuela’s key buyers, could face higher costs for crude imports as a result of the secondary tariff.
The Economic Times reported that Indian refiners, including Reliance Industries Limited (RIL) and Indian Oil Corporation (IOC), restarted purchases of Venezuelan oil in late 2023 after the US eased sanctions on Caracas.
The new tariff could complicate India’s energy strategy, as it heavily relies on diversified oil sources to manage costs and supply security. The policy may also affect China, another major importer of Venezuelan oil.
Market and policy reactions
Despite Trump’s announcement, US financial markets appeared largely unaffected, opening higher on Monday.
Analysts quoted by Bloomberg said that the tariff could discourage countries from engaging with Venezuela but noted that its effectiveness would depend on global compliance and enforcement mechanisms.
Meanwhile, the US had previously been a major buyer of Venezuelan oil. According to the US Commerce Department, the United States imported $5.6 billion worth of oil and gas from Venezuela in 2024, making it one of the top foreign suppliers.
Trump’s announcement follows reports that his administration is considering delaying previously announced tariffs on imports of pharmaceuticals, cars, and lumber.
Those tariffs were also scheduled to take effect on 2 April, the same day the Venezuelan oil-related tariffs will be imposed.
Trump’s move marks another escalation in his trade policies, which have increasingly targeted both geopolitical rivals and key trading partners.
His administration has already threatened reciprocal tariffs on multiple countries as part of a broader push for what he calls “fair trade.”
