Trump Threatens Tariffs on Buyers of Venezuelan Oil While Easing Broader Trade Plans
President Donald Trump has announced plans to impose 25% tariffs on imports from countries that purchase oil from Venezuela, in a move he described as a “secondary tariff” aimed at punishing the South American nation for “numerous reasons”—including, he claims, sending gang members to the United States.
Countries that could be affected by the policy include China, India, and Spain, which are among Venezuela’s key oil customers. The warning comes as the Trump administration increases pressure on Venezuela’s government, which remains heavily dependent on oil exports for revenue.
Shift in Trade Strategy
In contrast to his aggressive stance on Venezuela, Trump hinted at a more measured approach to his broader tariff policy. Speaking on Monday, he suggested the White House may grant exemptions or offer reduced rates to some countries when new trade tariffs are announced on April 2.
“We may take less than what they’re charging us,” Trump said, referencing his longstanding goal of “reciprocal” trade tariffs. He added, “We may give a lot of countries breaks,” signaling a possible softening of earlier hardline proposals.
Markets reacted positively to the news. The S&P 500 rose by 1.7%, the Dow Jones gained 1.2%, and the Nasdaq jumped 2.2%, as investors viewed the updated tone as a sign of more targeted, less disruptive trade policy.
Impact on Venezuela and Chevron
The 25% tariff threat could significantly impact Venezuela’s remaining oil buyers and further isolate its government. Although China is a major customer, Venezuela is only a small supplier within China’s massive oil import market, which exceeded 11 million barrels per day in 2024.
The US has also been buying Venezuelan oil through a sanctions exemption granted to Chevron, the only American company allowed to operate there. On Monday, the Trump administration extended Chevron’s deadline to exit Venezuela by two months—until May 27.
Chevron declined to comment on the extension.
Oil prices climbed by over 1% following Trump’s announcement, reflecting uncertainty over the future of Venezuelan oil exports and the possibility of increased market tension.
Tariffs as a Geopolitical Tool
Since returning to office in January, Trump has increasingly used tariffs as a foreign policy lever, often tying them to national security or immigration issues rather than trade alone. On Monday, he reaffirmed plans to impose targeted tariffs on specific imports such as cars, lumber, and semiconductors, claiming the threat of these measures is already boosting investment in the U.S.
The proposed tariffs on Venezuela’s oil partners are expected to further strain U.S. relations with countries like China and India, both of which are also entangled in broader trade and diplomatic discussions with Washington.
As the April 2 tariff announcement approaches, businesses and foreign governments will be watching closely to see how Trump balances economic nationalism with diplomatic flexibility.
