Trump threatens Venezuelan oil buyers with 25% tariff
Oil prices surged after US President Donald Trump threatened to impose 25% tariffs on US goods imports from countries buying Venezuelan oil.
CONCEPT: Flags of the US and Venezuela painted on a cracked wall. Getty Images
In another round of executive orders, the US President has announced that any country that continues to purchase oil and gas from Venezuela will have to pay 25% additional tariffs on business deals with the US.
“On or after April 2, 2025, a tariff of 25 percent may be imposed on all goods imported into the United States from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties,” the White House said in a statement.
The news has supported global oil supply-related concerns and moved Brent crude’s price higher, according to market analysts. “The [25% tariff] news helped ICE Brent break above US$73/bbl, settling at its highest since late February,” two analysts from ING Bank said.
China, India, Spain, Italy and Cuba are among the largest consumers of Venezuelan oil, Reuters reports. Once imposed, the 25% tariffs will expire one year after the last date on which the country imported Venezuelan oil, the White House stated.
Extension of Chevron’s wind-down period
The US treasury department on Monday extended US oil producer Chevron’s window to wind down all operations in Venezuela by seven more weeks until 27 May, Reuters reports.
Earlier this month, the oil company had received a 30-day notice period from the Trump administration to withdraw all operations in Venezuela.
Despite the existing sanctions, Chevron has held a license allowing it to operate in the country and export crude oil to the US since 2022. "In recent years, Venezuela increased oil production and exports as the Biden administration eased sanctions, providing a waiver to Chevron to operate in the country," ING Bank's analysts added.
By Aparupa Mazumder
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