US President Donald Trump on Monday announced steep tariffs on imports from countries buying Venezuelan oil and gas, a move that could affect major economies like China and India and add to global trade uncertainty, reported AFP.
After returning to the White House in January, Trump has imposed tariffs on both allies and rivals, using trade measures to advance his economic and diplomatic agenda.
The latest 25 percent tariffs, targeting direct and indirect buyers of Venezuelan oil, could take effect as early as April 2, according to an order he signed on Monday.
The secretary of state, in coordination with other US agencies, has the authority to decide whether to enforce the levy, which could affect major buyers like China and India, the report added.
Experts told AFP that Venezuela exports oil to both nations, as well as to the United States and Spain. Donald Trump told reporters on Monday that the 25 percent tariff would be imposed on top of existing rates.
The experts also added that in February, Venezuela supplied approximately 500,000 barrels of oil per day to China and 240,000 barrels to the United States.
Trump has proclaimed April 2 as “Liberation Day” for the world’s largest economy, pledging reciprocal tariffs on trade partners to address what Washington views as unfair practices.
He had previously hinted at sector-specific tariffs taking effect around the same time, but on Monday, the White House indicated it might opt for a more limited approach.
Announcing the Venezuela-related measure on Truth Social, Trump cited “numerous reasons” for what he called a “secondary tariff.”
He accused Venezuela of “purposefully and deceitfully” sending “undercover, tens of thousands of high level, and other, criminals” to the United States.
In his post, he also wrote, “Venezuela has been very hostile to the United States and the Freedoms which we espouse.”
Trump’s tariff on Venezuelan oil buyers to last a year
Trump’s order states that the 25 percent tariff will expire one year after a country last imported Venezuelan oil—or earlier if Washington decides to lift it.
His announcement comes after the deportation pipeline between the United States and Venezuela was suspended last month, following his claim that Caracas had failed to uphold an agreement to promptly accept deported migrants.
In response, Venezuela announced that it would no longer take back deportation flights.
With AFP inputs
