Trump Unveils 'Unprecedented' Secondary Tariff Strategy Against Venezuela
President Trump has signed an executive order imposing an additional 25% tariff on imports from countries that buy crude oil from Venezuela, in retaliation for Venezuela allegedly sending a series of criminals to the US.
Trump Announces Secondary Tariff Regime Against Venezuela
The US is continuing to use tariffs as a tool in its economic war to achieve its goals. On Monday, President Donald Trump signed an executive order establishing a 25% tariff on all imports from countries that buy crude oil from Venezuela, starting April 2.
The order makes it clear that the tariff can be applied indirectly to countries involved in the transaction, including those that purchase oil from Venezuela through intermediaries or third countries where the oil can be reasonably traced to Venezuela. This creates a discretionary element, giving Secretary of State Marco Rubio the power to decide whether to impose tariffs on a case-by-case basis.
In a post on Truth Media, Trump explained that the measure was in response to allegations of a plan to flood the country with dangerous criminals and gangs like the Tren de Aragua. The order also noted that President Maduro’s government has created “massive instability in the Western Hemisphere” by forcibly displacing millions of Venezuelans, placing a heavy burden on neighboring countries.
The United States is Venezuela’s second-largest oil buyer, with Chevron co-operating one of the country’s largest oil operations. However, Chevron was ordered to cease operations in Venezuela by May 27.
According to reports, China is now Venezuela’s largest buyer of crude. The new measure could further worsen trade relations between the US and China, which have already been affected by other tariffs.
Read more: Trump vs. China—Tariff War and Export Restrictions Intensify
Fernando Ferreira, director of geopolitical risk at consultancy Rapidan Energy, told the Financial Times that they have never seen a tariff like this before. He stressed that if the measure were implemented, it would severely disrupt Venezuela's oil exports. "I think most countries would impose restrictions themselves to avoid a full-blown tariff on their exports to the US," he concluded.