Trump announces 25% tariff on nations buying Venezuelan oil
What's the story
United States President Donald Trump has announced a 25% tariff on countries purchasing oil or gas from Venezuela.
In a Truth Social post, he said that countries buying these resources from Venezuela would be required to pay this tariff on all their deals with the US from April 2.
Trump also announced a "secondary" tariff on Venezuela itself for its alleged association with the criminal gang Tren de Aragua.
Secondary tariff
Venezuela's ties to criminal gang influence tariffs
He said his administration is deporting immigrants suspected to be members of the gang who entered the US illegally.
Trump deported more than 250 mainly Venezuelan alleged gang members to El Salvador last week.
He invoked the controversial Alien Enemies Act, a 1798 law meant only to be used in wartime, to deport them.
Trade tensions
Trump intensifies tariffs against China
The latest tariffs could increase taxes for China, which imported 68% of Venezuela's oil in 2023.
The Trump administration has already imposed universal 20% tariffs on imports from China as part of efforts to combat the illegal trade in fentanyl.
This could raise taxes for China, which bought 68% of Venezuela's oil in 2023.
Other nations buying Venezuelan oil include Spain, Russia, Singapore, and Vietnam.
Tariff strategy
Trump's "LIBERATION DAY" and plans for Mexico, Canada
Trump has declared April 2 as "LIBERATION DAY," according to his vague plans to impose equal import taxes.
He further reiterated a 25% tariff on Mexico and Canada, the two largest US trading partners.
He has also raised his 2018 steel and aluminum tariffs to 25% on all imports.
However, Trump told reporters on Friday that there would be "flexibility" in his tariffs and later on Monday said, "I may give a lot of countries breaks."
Economic impact
Trump's tariffs aim to weaken Maduro's regime
The new tariffs are likely to sap the regime of Nicolas Maduro in Caracas, even as it puts further pressure on China, a major buyer of Venezuelan crude.
The US is also a major buyer of Venezuelan oil.
The latest move comes after exports of Venezuelan crude had risen to a five-year high in February before the Trump administration announced it was forcing Chevron Corp. to wind down its operations in the country by April 3.