Trump proposes 25% tariff on Venezuela oil imports

Trump announces 25% tariff on nations buying Venezuelan oil; markets expect potential easing of other planned tariffs.

In Short

Trump voiced concerns over U.S. tariffs and announced a new 25% tariff on nations importing oil from Venezuela. This increase, alongside existing tariffs on China, has led to positive market reactions and a licence extension for Chevron’s operations in Venezuela.

Trump expressed his discomfort over the tariffs imposed on the U.S. during recent comments.

He indicated that he would outline a series of tariffs on April 2, which he termed “liberation day.” Some tariffs on goods like cars and pharmaceuticals may be delayed.

Following his statements, markets reacted positively, anticipating a potential reduction in tariffs.

Trump announced a new 25% tariff on nations buying oil or gas from Venezuela, which would compound existing tariffs, including a 20% tariff on China, resulting in a total of 45% tariffs against this trade partner.

In a related development, the Treasury Department has extended Chevron’s operating license in Venezuela until late May. Previously, the administration had planned to give Chevron 30 days to cease operations in the country.

Chevron had sought this license extension, which was discussed in a recent meeting between Trump, Chevron CEO Mike Wirth, and various oil industry executives.

Chevron was granted a license to operate in Venezuela in 2022 after being barred by the previous administration.

The Treasury noted that the license prevents Chevron from paying taxes to the Venezuelan government or exporting oil elsewhere apart from the U.S.

Trump labelled the new tariff as a “secondary tariff” aimed at addressing migrant flows from Venezuela, linked to gang activity.

Countries importing Venezuelan oil include China, India, Spain, and Malaysia. Trump affirmed that any nation engaging in oil trade with Venezuela will incur the 25% tariff.