President Donald Trump is imposing a 25% ‘Secondary’ tariff on Venezuela, and a 25% tariff on “any Country that purchases Oil and/or Gas from Venezuela,” payable to the United States “on any Trade they do with our Country.”
Trump cited “the fact that 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,” in his 25% tariff on Venezuela, and says the additional 25% tariff punishing anyone buying oil or gas will begin on April 2nd.
Needless to say, the news sent oil immediately higher in Monday trade.
The news comes one day after Venezuela agreed to resume accepting US deportations of illegal immigrants.
In February, Trump ordered the termination of a key oil deal with Venezuela, announcing in a post on Truth Social that he was “reversing the concessions” of the “oil transaction agreement, dated November 26, 2022.”
These were concessions enacted by his Democratic predecessor Joe Biden, which had allowed Chevron Corp – active in the Latin American country for a century – to produce and sell oil in Venezuela despite sanctions.
What’s going on here?
Trump cracking down on Venezuela and Iran oil production (~5MM bpd) while backchanneling with Saudis/UAE to allow OPEC+ to boost overall output in April, and leaving some space for US producers. https://t.co/flVwSmEUKr
— zerohedge (@zerohedge) March 24, 2025
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