President Donald Trump issued an order on Monday authorizing a 25% tariff on any nation purchasing oil and gas from Venezuela, escalating tensions with the Latin American country amid an ongoing dispute over immigration. The move targets a key revenue source for Nicolás Maduro’s government while also pressuring China, a major buyer of Venezuelan crude. The executive order grants the State Department authority to impose these tariffs in addition to any existing ones, with Secretary of State Marco Rubio given discretion over which nations will be affected.
Set to take effect on April 2, the tariffs are part of a broader set of trade measures expected to be unveiled the same day. Trump referred to them as “secondary tariffs,” likening them to secondary sanctions used against entities doing business with targeted regimes. Following the announcement, U.S. crude prices briefly rose, while Venezuelan bonds declined.
Maduro’s government condemned the measure as “illegal and arbitrary,” vowing to challenge it through international organizations. Meanwhile, the U.S. Treasury Department granted Chevron an extension until May 27 to conclude its dealings with Venezuela’s state-owned oil company, PDVSA.
The decision comes as Venezuelan crude exports hit a five-year high in February, before the Trump administration moved to restrict Chevron’s operations in the country. Trump has framed the measure as a way to curb Venezuela’s influence while also addressing concerns over criminal activity linked to Venezuelan migrants. The order is expected to impact major oil importers, including China, India, and some European nations, though U.S. refiners reliant on Venezuelan heavy crude appear exempt from the tariffs.
