Trump says countries that purchase oil from Venezuela will pay 25% tariff on any trade with U.S.

President Donald Trump said Monday that the U.S. will impose 25% tariffs on countries that buy oil and gas from Venezuela, as he seeks to increase pressure on President Nicolas Maduro.

Countries that buy oil and gas from Venezuela will face tariffs on any trade they have with the U.S., Trump said in a post on his social media platform Truth Social. The tariffs take effect on April 2, the president said.

Venezuela exported about 660,000 barrels per day in 2024, according to data from Kpler. China was the largest destination for the South American nation’s crude exports, purchasing 270,000 bpd last year.

“This announcement by the Trump administration appears to be one more action targeting China,” said Matt Smith, lead oil analyst for the Americas at Kpler.

U.S. crude oil was up 71 cents, or 1.04%, at $68.99 per barrel by 11:36 am ET. Global benchmark Brent was trading 67 cents, or .93%, higher at $72.83 per barrel.

Trump has sought to increase pressure on the Maduro regime since taking office. The president accused Venezuela of sending Tren de Aragua gang members to the U.S. when announcing the tariffs on Monday. The Trump administration has designated the gang as a foreign terrorist organization.

Trump said in late February that he would reverse a Biden administration decision which allowed Chevron to restart oil production in Venezuela. The Treasury Department gave the oil major until April 3 to wind down its operations in Venezuela.

Trump, however, expressed openness to extending Chevron’s license to produce oil in Venezuela during a meeting at the White House last week with the oil major’s CEO Mike Wirth and other fossil fuel industry executives, people familiar with the discussions told The Wall Street Journal.

The tariffs are intended to make it more difficult for China to gain a foothold in Venezuela’s oil industry while bolstering Chevron and ensuring oil flows to the U.S., the people told the Journal.

Trump invoked the Alien Enemies Act on March 15 in response to what the president claims is an invasion by Tren de Aragua. The president said its members are conducting “irregular warfare” against the U.S. at the direction of Maduro.

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