Trump to enforce 25% tariff on nations importing Venezuelan oil and gas

US President Donald Trump announced on Monday that countries purchasing oil or gas from Venezuela will face a 25 per cent tariff on any trade conducted with the United States.

This measure, described as a "secondary tariff," is set to take effect on April 2, according to a post on Trump's Truth Social account. He justified the decision by claiming that Venezuela has sent "tens of thousands" of individuals to the US with a "very violent nature."

In his post on Truth Social, Trump said, "We are in the process of returning them to Venezuela — It is a big task! In addition, 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. All documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA. Please let this notification serve to represent that the Department of Homeland Security, Border Patrol, and all other Law Enforcement Agencies within our Country have been so notified."

Earlier in March, Trump ordered a 30-day phase-out of a licence that had allowed Chevron to continue operating in Venezuela and exporting its oil since 2022. The move followed his accusations that Venezuelan President Nicolás Maduro had failed to make sufficient progress on electoral reforms and the return of migrants.

Tariffs on automobiles, aluminium & pharmaceuticals

Meanwhile, Trump also announced on Monday that he will soon introduce tariffs on automobiles, aluminium, and pharmaceuticals.

Addressing reporters at the White House, Trump stated that the US would require these products in case of crises, including potential conflicts. "We've been ripped off by every country," he said while presiding over a Cabinet meeting.

Commerce Secretary Howard Lutnick, who was also present, mentioned that on April 2 — the date Trump has set for implementing several tariffs — the US will introduce what he referred to as "the external revenue service". This comes as a contrast to the Internal Revenue Service, which is responsible for collecting taxes from American citizens.

Reliance's oil trade with Venezuela

Significantly, India's Reliance Industries is also said to have resumed its oil trade with Venezuela last year. Reliance had started this trade with its state oil company PDVSA, according to the internal documents accessed by Reuters.

The oil exchange resumed following a US licence authorising the trade. "A supertanker carrying about 1.9 million barrels of Venezuelan Merey heavy crude departed earlier this month for India's Sikka port, while a unit of Reliance delivered a 500,000-barrel cargo of heavy naphtha to PDVSA this month in exchange, according to the document," Reuters had reported back in December 2024.

However, the impact of the latest 25 per cent tariff announcement by Trump on Reliance's trade fortunes in the South-American country is still unclear.

Countries to be affected

Trump's latest tariff salvo is likely to impact a number of countries, including China which is the largest buyer of Venezuela's oil. In February alone, Beijing received directly and indirectly around 503,000 barrels per day of Venezuelan crude and fuel, which represented 55 per cent of total exports.

Though China's oil trade with Venezuela has decreased on account of a range of sanctions imposed by the Trump administration, Chinese buyers continued receiving Venezuelan crude after the latter widened price discounts to continue selling to its most important market.

Spain, Italy, Cuba and India are other consumers of Venezuelan oil.