WASHINGTON (TNND) — Any country buying Venezuelan oil will face a 25% tariff. President Trump announced the new plan in a Truth Social post this week, adding that the tariff will go into effect on April 2nd. A day the President refers to as “Liberation Day.”
In a Truth Social post on Monday, President Trump wrote in part, “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.” A move Jason Miller, a supply chain expert at Michigan State University, tells us would hurt China more than others.
“The 25% tariff would stack on top of the 20% minimum existing tariffs. So you’re looking at 45% then from everything from China,” Miller said.
China relies heavily on Venezuela for oil. According to data provided to CNN from Lipow Oil Associates, Venezuela produced 921,000 barrels of crude oil per day in 2024. Over 350,000 of which were shipped to China.
“China is the largest buyer of Venezuelan crude oil,” said Miller.
Jared Pincin, an economics professor at Cedarville University, says the intention behind these tariffs could be to make it more difficult for China to gain footing in the Venezuelan oil industry. Instead, it directed buyers to the United States.
We have seen the Trump Administration the first term and this term really try to encourage Europe in particular to be buying more natural gas from the United States,” Pincin said.
Something that might be a bit more feasible now since the Treasury Department on Monday extended American-owned Chevron’s license to produce oil in Venezuela until May 27th.
“Instead of buying from Venezuela, if we make it more expensive to do that, you’re going to look towards alternatives,” said Pincin.
The tariff is also meant to put pressure on Venezuela. In that same Truth Social post, President Trump accused Venezuela of sending violent gang members from Tren de Aragua to the United States.