On March 24, President Donald Trump announced a 25% tariff on any country that purchases oil and gas from Venezuela. Photo: Roel Hemkes.
Guacamaya, March 25, 2025. The recent executive order issued by President Donald Trump has caused a stir in both international energy markets and diplomatic relations. The measure imposes a 25% tariff on all goods imported into the United States from any country that buys Venezuelan oil and gas, effective April 2.
This decision, combined with the extension of Chevron’s license to operate in Venezuela until May 27, reflects a multifaceted U.S. strategy to consolidate its influence over Venezuelan oil trade while maintaining pressure on the Venezuelan government.
On one hand, these measures aim to limit the involvement of key players like China and India—Venezuela’s top crude buyers—by raising the cost of their imports and making access to Venezuela’s heavy oil less attractive.
At the same time, by allowing Chevron to continue operating in the country, Washington ensures a foothold in Venezuela’s energy market, maintaining its role as a key player in the trade dynamic.
By economically punishing Venezuela, the U.S. seeks to weaken the legitimacy of Nicolás Maduro’s government and indirectly address migration issues. The Trump administration argues that Venezuelan government policies have contributed to the humanitarian crisis, driving hundreds of thousands of Venezuelans to seek opportunities in the U.S.
The Strategic Application of Tariffs
The 25% tariff is designed to discourage purchases of Venezuelan oil by countries such as China, India, Spain, and Italy—Venezuela’s main crude consumers, according to Reuters. The executive order states that the tariff will apply even to indirect purchases made through third parties, broadening its reach and reinforcing its punitive nature.
Additionally, the new 25% tariff builds on existing U.S. sanctions under the International Emergency Economic Powers Act (IEEPA), further strengthening Washington’s ability to exert economic pressure on countries trading with Venezuela.
Venezuelan economist Francisco Rodríguez noted that the measure, published in full on Monday night, delegates authority to Secretary of State Marco Rubio to decide whether to impose the tariff on imports from any given country. Rodríguez highlighted that this level of discretion is unprecedented, granting the State Department extraordinary power to enforce trade sanctions with minimal oversight.
The tariff will remain in effect for one year from the last import date. However, since its implementation depends on the State Department—and specifically on Secretary Marco Rubio’s discretion—it becomes a selective tool.
Notably, Rubio, a long-time critic of the Maduro government, has recently played a central role in negotiations over the repatriation of Venezuelan migrants. The Secretary of State has warned that if Venezuela does not accept a steady flow of deportation flights, the U.S. will impose “new, severe, and escalating sanctions.”
By placing enforcement under the State Department, the executive order becomes a flexible and adaptive instrument within U.S. foreign policy. Its selective application allows the U.S. to strategically pressure countries trading with Venezuela while addressing issues like Maduro’s legitimacy and the migration crisis.
Impact on the Oil Market
Markets have already reacted to the news of these new tariffs. Brent crude and West Texas Intermediate prices have risen by over 1% since the announcement, according to Reuters. However, gains have been limited by OPEC+ plans to increase production in May.
Meanwhile, the extension of Chevron’s license until May 27 ensures the company can continue receiving payments for oil shipments to U.S. clients. Analysts consulted by Reuters say this decision prevents an immediate collapse in Venezuela’s crude export volumes, particularly to the U.S.
David Goldwyn, president of Goldwyn Global Strategies, told Reuters that both measures reflect a compromise within the Trump administration between those seeking to maintain Western companies’ presence in Venezuela and those aiming to restrict Maduro’s revenue. “This potentially provides a sweet spot for both,” he said.
The pressure on Venezuela could also force the Caribbean nation to offer steeper discounts on its crude exports, even at the cost of reduced income. This echoes the secondary sanctions imposed by Trump in 2020, which had similar consequences, Reuters reported.
International Reactions and Potential Consequences
China, Venezuela’s largest oil buyer, has firmly rejected the measure, calling it “blatant interference in other countries’ internal affairs.” In February, the Asian giant acquired roughly 503,000 barrels per day of Venezuelan oil and fuel, both directly and indirectly, accounting for about 55% of Venezuela’s total exports, according to Reuters.
Spain has also voiced concern. Government spokesperson Pilar Alegría stated that both Spain and the European Union are prepared to deliver a “strong response” to defend their economic interests and producers. Companies like Repsol, which maintain trade ties with Venezuela, could be significantly affected.
For its part, the Venezuelan government has condemned Trump’s latest actions as an “arbitrary, illegal, and desperate measure.” In an official statement, it emphasized that these measures, far from weakening the government’s resolve, “highlight the failure of previous sanctions” imposed on the country.
Energy expert David Goldwyn told Reuters that the new tariffs could boost global demand for Russian oil. “China and India are unlikely to risk additional tariffs to access Venezuelan heavy oil when they can buy Russian crude,” he said. This, in turn, could strengthen Russia’s position in the global energy market.
On Monday, during a meeting with his cabinet, Trump suggested that some countries might receive tariff exemptions. This flexibility could be a strategy to ease diplomatic and economic tensions stemming from these measures.
The imposition of a 25% tariff on countries purchasing Venezuelan oil and gas represents a move to pressure Nicolás Maduro’s government and its international allies. However, the temporary extension of Chevron’s license reflects a strategy to retain influence in the Western oil market.
While these measures aim to restrict Venezuela’s revenue, they also create uncertainty in energy markets and escalate diplomatic tensions. The long-term impact will depend on how key global players respond to this new chapter in U.S. unilateral sanctions policy.
