US President Donald Trump said on Monday that starting April 2, a 25% tariff will be imposed on all imports from any country that purchases oil or gas from Venezuela — a move aimed at punishing nations engaging economically with a government Trump described as “very hostile” to the United States.
The measure, which comes despite the US itself continuing to import Venezuelan oil, is expected to deeply affect countries such as China, India, Spain, Russia, Singapore, and Vietnam — all recipients of Venezuelan crude. According to a 2024 report from the US Energy Information Administration, China alone accounted for 68% of Venezuela’s oil exports in 2023.
In a striking contradiction, the United States imported 8.6 million barrels of Venezuelan oil in January 2025, even as sanctions remain in place. The US Treasury Department also extended Chevron Corp’s license to operate in Venezuela until May 27, temporarily exempting the company from sanctions and allowing it to continue pumping and exporting oil from the South American nation.
Despite the extension, Trump had earlier announced the termination of the Chevron-Venezuela agreement, once considered a critical financial channel for Venezuela’s struggling economy.
Venezuelan President Nicolás Maduro condemned the tariff announcement, calling it an “arbitrary, illegal and desperate measure” by the US designed to stifle Venezuela’s development. His government criticised what it described as a “fascist right” effort to economically suffocate the country through sanctions, vowing that Venezuela would continue to resist foreign economic pressure.
“Venezuela is a sovereign country,” the government stated. “Its people have resisted with dignity, and the world no longer submits to any form of economic dictatorship.”
President Trump defended the tariffs, asserting they would revitalize US manufacturing. He highlighted Hyundai’s announcement of a $5.8 billion steel plant in Louisiana — expected to create 1,400 jobs — as proof that tariffs are effective.
“This investment is a clear demonstration that tariffs very strongly work,” Trump said, flanked by Hyundai Motor Group’s executive chairman, Euisun Chung, who praised the partnership with the US.
Trump also claimed the new Venezuela-related tariffs target countries indirectly supporting criminal activity, referencing the Venezuelan gang Tren de Aragua. He said the US is deporting undocumented immigrants allegedly linked to gangs and warned of further consequences.
The broader economic implications are significant. Analysts believe the latest move could be a precursor to even more aggressive measures against China, particularly amid ongoing efforts to combat the illicit fentanyl trade. Trump has already imposed a 20% universal tariff on Chinese imports, and a further 25% would deepen the standoff between the world’s two largest economies.
Additionally, Trump hinted at extending the 25% tariff policy to imports from Mexico and Canada, the United States’ top trading partners, and increasing existing levies on steel, aluminum, automobiles, pharmaceutical products, lumber, semiconductors, and copper.
Labeling April 2 as ‘Liberation Day,’ Trump suggested this would mark a broader reset of US trade policy aimed at aligning import taxes with those charged by other nations. He also signalled a possible ‘reciprocal’ approach to tariffs but kept details vague, noting the US might be even nicer than that.
Financial markets showed cautious optimism, with investors betting the new tariffs might be more selectively applied than initially feared. However, concerns over inflation and a potential global trade war linger.
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