WASHINGTON: US President Donald Trump announced Monday steep tariffs on imports from countries buying oil and gas from Venezuela, a punitive measure that could hit China and India, among others, and sow fresh global trade uncertainty.
Since returning to the White House in January, Trump has unleashed tariffs on US allies and foes alike, attempting to strong-arm both economic and diplomatic policy.
The latest across-the-board 25 percent levies targeting buyers of Venezuelan oil will come into effect April 2, Trump said on his Truth Social platform. These could hit China and India, with experts noting that Venezuela exports oil to both those countries, as well as the US and Spain.
Trump has dubbed the date "Liberation Day" for the world's biggest economy, already promising reciprocal tariffs tailored to each trading partner in an effort to remedy practices that Washington deem unfair. He earlier also said sector-specific duties would come around the same day, but the White House said Monday it might take a more targeted approach.
Venezuela had managed to redirect its oil exports to major economies such as China and India despite previous rounds of US sanctions.
Spain, Russia, Singapore, and Vietnam are also among Venezuela’s oil importers, the report shows. In January, the United States imported 8.6 million barrels of Venezuelan oil, according to Census Bureau data.
In 2023, Venezuela exported 660,000 barrels of crude oil per day, with India, China, and Spain among its top buyers, according to Financial Times.
India has also emerged as a key buyer, importing 22 million barrels in 2023, making up 1.5% of its total crude oil purchases. Similarly, Reliance Industries had secured US approval to import Venezuelan crude, accounting for a significant share of New Delhi’s imports after sanctions were temporarily eased, Reuters reported in July 2024.
The proposed tariffs would likely add to China's tax burden, as it accounted for 68% of Venezuela’s oil exports in 2023, according to a 2024 analysis by the US Energy Information Administration.
In his latest announcement involving Venezuela, the president 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.
He added in his post that "Venezuela has been very hostile to the United States and the Freedoms which we espouse."
Trump's announcement comes as the deportation pipeline between the United States and Venezuela was suspended last month when Trump claimed Caracas had not lived up to a deal to quickly receive deported migrants.
Venezuela subsequently said it would no longer accept the flights.
But Caracas said Saturday that it had reached agreement with Washington to resume repatriations after which nearly 200 Venezuelan citizens were deported from the United States via Honduras.
Separately Monday, the Trump administration extended US oil giant Chevron's deadline to halt its operations in Venezuela through May 27.
The company had been operating in Venezuela under a sanctions waiver previously granted.
Auto, pharma and semiconductor next?
Trump's latest move adds to tariffs he has vowed would start on or around April 2. Besides reciprocal tariffs, he has promised sweeping sector-specific duties hitting imported automobiles, pharmaceuticals and semiconductors. As things stand, however, his plans for the day might become more targeted.
Sector-specific tariffs "may or may not happen April 2," a White House official told AFP, adding that the situation is "still fluid." But the official reaffirmed that reciprocal tariffs would take place.
Trump told reporters Monday he would announce car tariffs "very shortly" and on pharmaceuticals sometime down the line.
US partners are furthering talks with Washington as deadlines loom, with EU trade chief Maros Sefcovic heading to the country Tuesday to meet his American counterparts -- Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer.
Hopes of a narrower tariff rollout earlier gave financial markets a boost.
The White House has vowed to impose "big tariffs" on April 2 in a major escalation of Trump's trade war, saying that "America has been ripped off by every country around the world."
Treasury Secretary Scott Bessent told Fox Business' Maria Bartiromo last week that Washington would go to trading partners with an indication of where tariff levels and non-tariff barriers are.
If countries stopped their practices, Bessent added, they could potentially avoid levies.
In the same interview, Bessent noted levies would be focused on about 15 percent of countries who have trade imbalances with the United States, dubbing these a "dirty 15."
(With additional inputs from AFP and AP)