TRUMP: ANY COUNTRY THAT BUYS VENEZUELAN OIL WILL BE HIT WITH 25% TARIFF

President Donald Trump is imposing a 25 percent “secondary” tariff on Venezuela and a 25 percent tariff on “any country that buys oil and/or gas from Venezuela” payable to the United States “for any trade they conduct with our country.”

The tariffs, which would take effect April 2 if Trump imposed them, would cut off a major source of revenue for Maduro’s government while increasing pressure on China, a major buyer of Venezuelan oil that has already faced 20 percent tariffs under Trump.

Trump cites "the fact that Venezuela has intentionally and fraudulently sent tens of thousands of high-profile criminals and other criminals, many of whom are murderers and people of very violent dispositions, to the United States undercover" in his announcement of 25 percent tariffs against Venezuela, and says an additional 25 percent tariff that will penalize anyone who buys oil or gas will take effect on April 2.

The move would have a particular impact on China, a major buyer of Venezuelan oil, and it is unclear:

i) whether China will accept the unilateral tariffs,

ii) how the United States will enforce them against China.

Venezuelan oil exports hit a five-year high in February, after which the Trump administration said it would force Chevron to shut down its operations by April 3. Chevron has asked for more time to complete transactions with Venezuela's state-owned company Petroleos de Venezuela. In canceling the deal, Trump announced in a post on the website Truth Social that he would “cancel the concessions” of the “November 26, 2022 oil deal.”

These are concessions accepted by his Democratic predecessor Joe Biden, which allowed Chevron Corp, which has had a presence in the Latin American country for a century, to drill and sell oil in Venezuela despite sanctions.

The news comes a day after Venezuela agreed to resume accepting deportations of illegal immigrants by the United States and is set to increase tensions with the Maduro government as Trump seeks to crack down on the Venezuelan Tren de Aragua gang.

The biggest buyers of Venezuelan oil are American refiners, which rely on high-quality Latin American crude. U.S. refiners include Valero Energy Corp, Phillips 66, PBF Energy and Chevron’s refinery in Pascagoula, Mississippi.

According to the U.S. government, Venezuela had the world's largest proven crude oil reserves in 2023, with about 303 billion barrels, or about 17% of the world's total. Despite its significant reserves, Venezuela will produce about 875,000 barrels per day in 2024, according to OPEC data, or about 0.9% of total global oil production in 2024.

Trump, however, has not announced plans to impose tariffs on oil sales to the United States, which means that crude oil imports from that country could continue at the same level.