President Donald Trump said he would impose a 25% tariff on any nation that imports crude oil from Venezuela, expanding the administration’s recent economic pressure on the country.
In a post to Truth Social shared Monday, Trump said he would be imposing a “secondary tariff” on Venezuela, claiming the country “has been very hostile to the United States and Freedoms which we espouse.”
“Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country,” the president said.
The tariff, set to go into effect on April 2, comes roughly a month after the president said he would be revoking a concession agreement made between the Biden administration and Venezuelan President Nicolás Maduro in November 2022 that granted a production and selling license to Chevron Corp. This allowed the oil and gas giant to operate in the country, despite U.S. sanctions.
Since the agreement, Chevron has been the only U.S. oil producer in Venezuela, producing around 200,000 barrels per day. The company indicated earlier this year that it was seeking to extend the current license granted by the previous administration.
The Trump administration’s reversal of the agreement and the newly announced tariff both appear to stem from the president’s frustrations over illegal immigrants from Venezuela entering the U.S.
On Monday, Trump claimed that the country “has purposefully and deceitfully sent to the United States, undercover, tens of thousands of high level, and other criminals, many of whom are murderers and people of a very violent nature.”
U.S. crude oil imports from Venezuela have steadily declined over the last few decades, dropping to around 125,000 barrels per day in 2023, according to data collected by the Department of Energy.
While that is a substantial amount, U.S. purchases of Venezuelan oil are dwarfed by imports from Canada, which make up nearly 60% of all U.S. crude imports.
Venezuela has long been listed as one of the top global exporters of crude oil, and it was ranked 20th by the International Energy Agency in 2022.
Last year, the country saw its exports increase by around 10.5%, with China listed as its top buyer. Other notable importers include Spain, Russia, Singapore, Vietnam, and India.
Amid the administration’s increased pressure on Venezuela, Trump’s energy Cabinet members have insisted the moves will not cause energy prices to rise back home.
Last month, Energy Secretary Chris Wright told the Washington Examiner at the White House that the administration’s agenda is to “drive prices down.”
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“America is, by far, the largest producer of oil and natural gas. If we can grow that production, small interruptions from other nations will not reduce in a net reduction in supply,” Wright said.
At the time, the secretary declined to comment on whether Trump would change his policy and reverse the pressure if Venezuela were to accept more Venezuelan illegal immigrants deported from the U.S.
