President Donald Trump of the United States has announced that any nation that buys oil or gas from Venezuela will be hit with a 25% tariff on their trade with the US, starting on April 2nd.
In a post on Truth Social, Trump criticized Venezuela for causing migration to the US and slammed its government, headed by President Nicolas Maduro.
“Venezuela has shown hostility towards the United States and the freedoms we stand for,” Trump stated.
“As a result, any country that buys Oil or Gas from Venezuela will be required to pay a 25% tariff to the United States on any trade they conduct with us.”
The tariff is not only aimed at Venezuela but also at China, the US’s main economic competitor and the top consumer of Venezuelan energy products.
Later, at a White House cabinet meeting, Trump announced that tariffs would also be imposed on pharmaceuticals, automobiles, and aluminum.
On April 2nd, US trading partners are preparing for what Trump calls “reciprocal tariffs” – import taxes meant to match those imposed by other countries on US products.
“The exciting part is that April 2nd is just around the corner. That will be America’s liberation day, the day when the rest of the world starts to respect America,” Commerce Secretary Howard Lutnick said at the cabinet meeting, echoing Trump’s previous statements.
Lutnick also mentioned that April 2nd would see the launch of the External Revenue Service, a new agency tasked with collecting tariffs and other import taxes.
However, critics have pointed out that the US Customs and Border Protection, under the Department of Homeland Security, already handles the collection and processing of tariffs for the federal government.
Establishing a new agency would likely require approval from Congress.
Campaign to pressure Venezuela
Trump’s recent announcements continue his campaign to pressure Venezuela, a nation he has targeted for a long time.
During his first term from 2017 to 2021, Trump imposed severe sanctions on the South American country as part of a “maximum pressure” strategy.
The Maduro government has been accused of human rights violations, including the torture and unlawful detention of dissidents. In his first term, Trump even offered a $15 million reward for information leading to Maduro’s arrest.
Maduro, in turn, has accused the US of interfering in his country’s internal affairs and trying to overthrow his government. He has also blamed US sanctions for worsening an economic crisis exacerbated by a sharp drop in oil prices in the mid-2010s.
Venezuela possesses some of the largest crude oil reserves globally and the biggest natural gas deposits in South America. Its economy largely relies on energy exports.
As Trump began his second term in January, it remained unclear whether he would resume his “maximum pressure” campaign. Critics speculated that Trump’s promise to lead a “mass deportation” campaign would require some level of cooperation with the Maduro government.
On February 1st, Trump’s special envoy Richard Grenell met with Maduro to request that Venezuela accept undocumented migrants deported from the US.
In the past, Venezuela had mostly refused to do so and does not maintain diplomatic relations with the US.
Despite this, Grenell secured a tentative agreement from Venezuela to accept deportations and the release of six detained Americans.
In a televised address last Saturday, Maduro confirmed that his country would resume accepting deportations from the US. A deportation flight arrived at Simon Bolivar International Airport early on Monday morning.
Despite this, Trump aims to further limit Venezuela’s economic activities, citing human rights concerns.
In February, Trump announced the revocation of an oil license granted to energy giant Chevron, allowing it to collaborate with Venezuela’s state-run oil companies. Chevron has until May 27th to close its operations in Venezuela.
In his recent post, Trump blamed Venezuela for the waves of migrants leaving its borders, claiming – without evidence – that the country deliberately sent people to the US.
“Venezuela has intentionally sent tens of thousands of high-level criminals, including murderers and violent individuals, to the United States,” Trump stated.
“Members of gangs like Tren de Aragua, designated as a ‘Foreign Terrorist Organization,’ have been sent to the US. We are working on returning them to Venezuela – it is a significant task!”
Trump has frequently linked migration with criminality, stoking fears of a criminal “invasion” in the US.
However, much of Venezuela’s exodus is driven by its economic crisis and political oppression. Around 7.7 million Venezuelans have fled the country due to shortages of basic necessities like food and medicine. Many are refugees or asylum seekers.
Critics have warned that Trump’s tariff threats could backfire, leading to higher prices for American consumers.
Among the countries buying Venezuela’s oil products and facing 25% tariffs are China, Spain, Brazil, and Turkey.
According to the US Energy Information Administration, Venezuela’s oil production has been declining for over a decade, dropping from 3.2 million barrels per day in 2000 to 735,000 in September 2023.
The Organization of the Petroleum Exporting Countries (OPEC) estimates that Venezuela’s petroleum exports were valued at $13.68 billion in 2023.
