Trump’s 25% tariff on Venezuela oil imports could rip apart global alliances

Washington D.C. – President Donald Trump announced on Monday that starting April 2, a 25% tariff would be imposed on all imports from any country purchasing oil or gas from Venezuela. In a Truth Social post, Trump cited Venezuela’s “hostile” actions toward the U.S. and declared that countries trading with the South American nation would face tariffs on their goods entering the U.S. He also revealed that new tariffs would be placed directly on Venezuela as well.

According to a 2024 U.S. Energy Information Administration report, China was by far the largest buyer of Venezuelan oil in 2023, purchasing 68% of the country’s oil exports. Other countries such as Spain, India, Russia, Singapore, and Vietnam also import oil from Venezuela. The United States, despite ongoing sanctions against Venezuela, also imported oil from the country—8.6 million barrels in January alone.

In response to Trump’s announcement, Venezuelan President Nicolás Maduro condemned the tariffs, labeling them “arbitrary” and “illegal.” He accused the U.S. of violating international trade rules and claimed the measures were intended to undermine Venezuela’s development. Maduro’s government pointed out the nation’s resilience, saying that previous sanctions had failed to “bring Venezuela to its knees.”

Trump, however, defended his tariffs, asserting they would revitalize American manufacturing jobs. He pointed to Hyundai’s recent $5.8 billion steel plant investment in Louisiana, which he claimed would create 1,400 jobs as a clear demonstration of how tariffs can drive domestic growth. “This investment is a clear demonstration that tariffs very strongly work,” said Trump during a ceremony at the White House.

The move to place tariffs on countries importing oil from Venezuela could escalate tensions with China, which has already been the target of universal 20% tariffs imposed by the Trump administration. These tariffs were primarily aimed at cracking down on the illicit trade in fentanyl, but additional tariffs on Chinese goods could spark a deeper trade conflict between the U.S. and China. Trump also linked Venezuela’s oil trade to the gang Tren de Aragua, which the U.S. claims is connected to criminal activity in the region, including immigrant smuggling.

Trump has dubbed April 2 “Liberation Day,” signaling his broader strategy to introduce more import taxes, with a particular focus on balancing trade with Mexico and Canada, the U.S.’s largest trading partners. Alongside this, he has expanded his 2018 steel and aluminum tariffs and has outlined plans to target additional sectors, such as autos, pharmaceuticals, and technology.

While the U.S. stock market showed signs of optimism on Monday, with the S&P 500 climbing, concerns remain about the economic impact of a potential trade war. Economists have warned that heightened tariffs could worsen inflationary pressures and slow down economic growth, a concern that has dampened investor confidence despite Trump’s assurances of targeted tariff actions.