Trump Announces Retaliatory Secondary Tariff Regime Against Venezuela
The U.S. is deepening its strategy of using tariffs as an economic warfare tool to achieve its purposes. On Monday, President Donald Trump signed an executive order that allows the enactment of a 25% tariff regime on any products imported from countries purchasing crude from Venezuela starting 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 post on Truth Media, Trump specified this measure would be applied as a response to an alleged organized plan to fill the country with dangerous criminals and organizations like the Tren de Aragua gang. The executive order extends this explanation, blaming President Maduro’s regime for the “destabilization of the Western Hemisphere through the forced migration of millions of Venezuelans, imposing significant burdens on neighboring countries.”
The U.S. is the second largest buyer of Venezuelan oil, with oil giant Chevron co-helming one of the largest extractive operations in the country. Nonetheless, the company has been ordered to stop activities by May 27.
According to reports, China would be the largest buyer of Venezuelan crude. This measure would potentially worsen the trade relationship between the two countries, which has already been affected by the establishment of previous 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.