President Donald Trump on Monday threatened a 25% tariff on any nation purchasing oil and gas from Venezuela, ratcheting up his dispute with the Latin American country over immigration with a move that risks roiling the global energy trade. The move aims to cut a major source of revenue for the regime of Nicolás Maduro in Caracas while also putting further pressure on China, which is a major purchaser of Venezuelan crude and already in the cross hairs for 20% tariffs under Trump. The US, meanwhile, is also a core buyer of Venezuelan oil, and Texas based Chevron Corp. is a key producer. The tariff would go into affect April 2, Trump said in a social media post, the same day his administration is expected to unveil a wider array of tariffs targeting multiple countries, adding yet another layer to the overlapping duties that have rattled trade partners and risk gumming up the global economy. US crude futures rose as much as 1.5% after Trump’s post, before pairing gains to 1.1% to trade at $69.02 a barrel as of 12:52 p.m. in New York. Prices have come under pressure in recent weeks due to growing worries about oversupply and a shaky US economic outlook. Meanwhile, Venezuela sovereign bonds slipped across the curve. US President Donald Trump’s tariff plans are a cornerstone of his economic agenda. Now that he’s back in office, businesses are navigating an uncertain future as he unveils his plans. Trump referred to the new charges as “secondary tariffs,” a potentially novel use of the trade restriction similar to so-called secondary sanctions imposed on firms or people doing business with targeted entities. Trump has ramped up scrutiny and sanctions on Venezuela since returning to the White House, reversing some easing under President Joe Biden.
“Any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country. All documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA,” Trump wrote Monday on Truth Social.
“Venezuela has been very hostile to the United States and the Freedoms which we espouse,” Trump wrote. The move escalates tensions with the South American nation ruled by socialist leader Maduro. Trump has sought to crack down on the Venezuela—based Tren de Aragua gang, including with a series of deportations under a little used 18th century law to a notorious El Salvadoran prison. A federal judge ruled Monday the migrants must be allowed to challenge the deportations in court. Trump announced the decision after Venezuela resumed accepting deportation flights from the US, which Maduro’s government briefly halted. But Trump said “Venezuela has purposefully and deceitfully sent to the United States, undercover, tens of thousands of high level, and other, criminals, many of whom are murderers and people of a very violent nature” including members of Tren de Aragua.
NN: It is amazing to me the markets fail to see Trump will sanctionable oil exports’ from countries that do not bend to his will. This is good for a nice little pop as you ae seeing, Can you imagine what will happen when he gets around to Iran….Try $90.00