US President Donald Trump on Monday announced high tariffs on imports from countries buying Venezuelan oil and gas—a move that could impact India, China, and others while fueling global trade tensions.
“Venezuela has been very hostile to the United States and the Freedoms which we espouse. Therefore, 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,” Trump posted on Truth Social.
Trump further accused Venezuela of “purposefully and deceitfully” sending criminals to the United States, including violent offenders and members of organisations such as Tren de Aragua.
Trump has aggressively imposed tariffs on both allies and rivals, using them as a tool to exert economic and diplomatic pressure, since his return to the White House in January.
25% tariffs on Venezuelan oil
The newly proposed 25% tariffs on Venezuelan oil, affecting both direct and indirect purchasers, could be implemented from April 2, as per Trump’s signed directive.
The implementation decision rests with the secretary of state, who will consult with other US agencies before determining whether to enforce these levies.
These tariffs scheduled for April 2, coincides with Trump’s planned announcement of reciprocal tariffs on other nations—a day he calls “liberation day.”
In addition to reciprocal tariffs, he has vowed to impose broad sector-specific duties on imported automobiles, pharmaceuticals, and semiconductors.
Will it impact India?
The tariffs could impact India and China, as both nations import Venezuelan oil, along with the United States and Spain. Trump confirmed the 25% tariff would be additional to existing rates.
The order stipulates that the 25% tariff will cease one year after a country’s last Venezuelan oil import, or earlier at Washington’s discretion.
In 2024, India imported 22 million barrels of oil from Venezuela, which made up 1.5% of India’s total crude oil purchases.
In January 2024: The nation’s imports increased to above 254,000 barrels per day, representing approximately half of Venezuela’s aggregate oil exports, which totalled nearly 557,000 barrels per day during this period.
In December 2023: India’s crude oil imports stood at roughly 191,600 barrels per day. The distribution amongst companies showed Reliance Industries securing 127,000 barrels per day.
Indian Oil Corporation (IOC) obtained 37,000 barrels per day, and the HPCL-Mittal Energy received 28,000 barrels per day.
Last year in February, Venezuela exported approximately 500,000 barrels of oil daily to China and 240,000 barrels to the United States, according to AFP.
Failure to uphold agreement
Trump’s announcement follows last month’s suspension of the deportation pipeline between the US and Venezuela, citing Caracas’ failure to uphold an agreement to take back migrants quickly. Following this, Venezuela withdrew from accepting these flights.
Earlier on Saturday, Caracas announced reaching a new agreement with Washington to resume deportations, resulting in nearly 200 Venezuelan nationals being deported from the US through Honduras.
Separately, the Trump administration extended the operational deadline for US petroleum corporation Chevron in Venezuela until May 27. The firm had been functioning under a sanctions exemption.
The ‘dirty 15’ countries
Earlier, during an interview with Maria Bartiromo on Fox Business, Treasury Secretary Scott Bessent indicated that Washington would approach trading partners to discuss tariff levels and non-tariff barriers.
Bessent explained that countries could potentially avoid these levies by discontinuing their current practices.
During the same discussion, Bessent mentioned that the tariffs would target approximately 15 percent of nations having trade imbalances with the US, referring to them as a “dirty 15.”
