Trump threatens to buy Venezuelan oil with 25% inches on countries
Trump threatens to buy Venezuelan oil with 25% inches on countries
President Donald Trump announced on Monday that he will raise a custom of 25% to all countries that buy oil from Venezuela.
Trump's announcement and their effects
"Venezuela is very hostile to the United States and the freedoms that we represent. Therefore, every country that buys oil and/or gas from Venezuela is forced to pay a customs of 25% to the United States to all trading transactions that you make with our country," said Trump in a contribution to Truth Social.
claims and previous customs measures
Trump claimed that without evidence that Venezuela had sent criminals "intentionally and fraudulently", including violent people and members of gangs such as the Tren de Aragua. These news comes at the time when reports have appeared that Trump is previously postponed to imports of drugs, cars and wood. These tariffs should come into force on April 2, the day on which Trump wants to announce a number of retaliatory tariffs against other nations - a day that he calls "liberation day". On Monday he promised to introduce the 25%tariffs to countries that buy oil from Venezuela.
market development and Venezuela as an oil importer
The markets opened on Monday significantly higher and seemed to be unaffected by Trump's latest threats. Venezuela was one of the most important foreign oil suppliers for the United States last year, according to the merchant data of the Ministry of Commerce. In total, the United States bought oil and gas worth $ 5.6 billion from Venezuela in 2024. This happened after the bid administration in 2023 briefly lifted the sanctions against Venezuelan oil. However, these were reintroduced in April 2024 after the bidding administration had accused Venezuelan leader Nicolás Maduro not to hold free and fair elections.
The role of Chevron and the licensing
Venezolan oil still finds its way to the United States, even after the sanctions came into force again, thanks to a joint venture license, which was granted Chevron to promote oil there. However, this license should be revoked on April 3 after Trump met Chevron CEO Mike Wirth and other oil managers last week. The Ministry of Finance announced on Monday that it will be extended by May 27th.
Repatriation of migrants and economic consequences
The original revocation of the license was partially presented by the Trump administration as a punishment measure for Venezuela's unwillingness to record deported migrants that were accused of being part of the notorious Gang Tren de Aragua. Since then, Venezuela has made an agreement to resume repatriation flights from the United States, by receiving 200 deported on Monday . Some members of the deported have cnn that their family members were not involved in any criminal activities, and very few evidence of the administration presented to refute such claims.
China dependence on Venezuelan oil
Venezolan oil is more important for China than for any other country. According to data from Lipow Oil Associates, Venezuela produced 921,000 barrels of crude oil every day in 2024. Of these, 351,000 barrels were shipped to China per day last year, the most important foreign destination for Venezuelan oil. The United States was in second place behind China with 228,000 barrels per day. Venezuela's oil deliveries are far behind the main source of America, Canada, which exported 4.1 billion barrels to the United States.
uncertain effects on the US market
It is still unclear whether and how the tariffs threatened by Trump will have an impact on the United States if Venezuelan oil, also via Chevron, is still bought. The White House did not answer the request from CNN for a comment. "This announcement of the Trump administration seems to be another measure that aims at China," said Matt Smith, senior oil analyst of the Americas at the Belgian analysis provider Kpler, to CNN. Trump has already introduced 20% tariffs to all Chinese goods that enter the United States, with steel and aluminum imports being also occupied with an inch of 25%.
Since Trump's tariffs tend to be additive, this would mean that if China continues to buy Venezuelan oil, the 25% inch he threatened on Monday would lead to imported Chinese goods in the USA with an inch of 45%, while steel and aluminum would be subject to a tax rate of 70%.
This report has been updated with further content.
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