US Tariffs On Venezuelan Oil Lead to Economic Tensions

New Delhi, 25th March 2025: US President Donald Trump has announced that starting April 2, he will impose a 25% tariff on countries purchasing oil and gas from Venezuela. The move is intended to increase pressure on the Venezuelan government. However, US oil giant Chevron has been granted some relief, with the Trump administration extending the deadline for the company to wind down its operations in Venezuela. Initially, the US Treasury Department had set a 30 -day deadline for Chevron.

This decision could have significant implications for countries like India and China, which are major buyers of Venezuelan oil.
The Venezuelan government has strongly condemned Trump’s decision to impose the 25% secondary tariff on countries purchasing oil and gas from Venezuela. In an official statement, Venezuela declared its firm and unequivocal disapproval, labeling the move arbitrary, illegal, and desperate.

The government argued that such actions are an ongoing interference in Venezuela’s sovereign affairs and vowed to oppose these measures by any means necessary.
In a post on his Truth Social platform, Trump confirmed that the secondary tariff on Venezuelan oil buyers would take effect on April 2. He later told reporters that the new tariffs would be in addition to the existing tariffs. Following the announcement, oil prices rose by approximately 1%.

In February, China bought roughly 503,000 barrels of crude oil and fuel per day from Venezuela, both directly and indirectly, which accounts for about 55% of Venezuela’s total exports. Other countries, including India, Spain, Italy, and Cuba, also continue to import oil from Venezuela. Venezuelan President Nicolás Maduro has rejected Trump’s sanctions, calling them illegal and aimed at crippling the nation. He described the measures as an economic war designed to destabilize Venezuela.

The new tariffs are expected to escalate tensions between the US and Venezuela, with the potential to affect global oil markets, particularly for countries like China and India. As the deadline approaches, all eyes are on how these sanctions will impact Venezuela’s economy and global oil prices. Despite strong opposition from Venezuela, the Trump administration is moving forward with its plans, signaling a tough stance on the issue. The coming months will reveal the broader effects of this policy on international relations and energy markets.