Trump Unveils Unprecedented Secondary Tariffs on Venezuela Oil Buyers

Trump Debuts ‘Never Before Seen’ Secondary Tariff Strategy Against Venezuela

Under President Trump’s decree, a 25% surcharge tax will be levied on goods imported from nations buying oil from Venezuela. Trump asserted that this action is in response to these countries allowing large numbers of serious offenders to enter the United States.

Trump Announces Retaliatory Secondary Tariff Regime Against Venezuela

The United States is intensifying its approach by employing tariffs as a means of economic combat to attain its objectives. On Monday, President Donald Trump signed an executive order enabling the implementation of a 25% tariff system on goods imported from nations buying oil from Venezuela, effective from April 2.

The order establishes that these tariffs might be charged indirectly to nations involved in these transactions, including “purchases of Venezuelan oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Venezuela.” This adds a discretionary element to the measure, giving Secretary of State Marco Rubio powers to decide on this matter.

In a Truth Media post, Trump outlined that this measure is meant as a counteraction to an alleged scheme aiming to flood the country with potentially harmful criminals and groups such as the Tren de Aragua gang. The executive order expands upon this, accusing the Maduro government of causing instability in the Western Hemisphere by forcibly migrating millions of Venezuelans, which places a heavy strain on neighboring countries.

In simpler terms, Chevron, a major oil company, jointly manages one of the biggest oil extraction projects in Venezuela, making the U.S. the second largest buyer of Venezuelan oil from this project. However, recent orders mandate that Chevron halt their operations by May 27th.

Based on current reports, it appears that China is poised to become the primary purchaser of Venezuelan crude oil. Such a move could further strain the existing trade ties between these nations, as they have previously experienced tension due to the imposition of tariffs.

Read more: Trump Barks, China Bites Back—Imposing Tariffs, Anti-Dumping Probes, and Export Limits

Fernando Ferreira, director of geopolitical risk at consultancy Rapidan Energy, told FT that they had never seen this kind of tariff application before. He added that, if finally applied, this would disrupt Venezuelan exports. “I suspect most countries will self-sanction to avoid across-the-board tariffs on all exports to the U.S.,” he concluded.

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2025-03-25 17:58