President Donald Trump announced on Monday that he would impose a 25% tariff on all imports from any country that purchases oil or gas from Venezuela, along with additional tariffs on Venezuela itself.
In a post on Truth Social, Trump stated that Venezuela has been “very hostile” toward the U.S., and any country buying oil from Venezuela will face the tariff on all trade with the U.S. beginning April 2.
Venezuela will also face a “Secondary” tariff due to its connection with the gang Tren de Aragua, according to Trump. The administration has been deporting immigrants it claims are members of this gang who entered the U.S. illegally.
Trump’s latest tariff proposal indicates that his administration may take more aggressive action against China, which is the largest buyer of Venezuelan oil. The U.S. has already implemented a universal 20% tariff on Chinese imports as part of efforts to combat the illegal fentanyl trade.
During a public portion of a Cabinet meeting on Monday, the U.S. president told reporters that the tariffs related to Venezuela had been “long in the making.” He also promised that new import taxes on automobiles and pharmaceutical drugs would soon be implemented, with the aim of encouraging more investment and the establishment of factories within the United States.
Trump has declared April 2 as “LIBERATION DAY,” in anticipation of rolling out import taxes that would be aligned with the rates charged by other countries. He also plans to impose 25% tariffs on imports from Mexico and Canada, the U.S.’s two largest trading partners. Additionally, the president has raised his 2018 tariffs on steel and aluminum to 25% for all imports. Trump mentioned on Friday that while his tariffs will have some “flexibility,” he remains opposed to granting exemptions to his import taxes.
On Monday, the U.S. stock market saw gains, as investors anticipated that the tariffs would be more targeted than initially feared. However, the S&P 500 index remains down for the year due to concerns that a trade war could slow economic growth and raise inflation.
Trump stated that his social media post on Monday would officially notify the Department of Homeland Security and other law enforcement agencies about his new policy.
The tariffs are expected to add to the taxes already imposed on China, which, in 2023, purchased 68% of Venezuela’s oil exports, according to a 2024 report from the U.S. Energy Information Administration. Other countries receiving oil from Venezuela include Spain, Russia, Singapore, and Vietnam. In January, the U.S. imported 8.6 million barrels of oil from Venezuela, based on data from the Census Bureau.