US President Donald Trump announced that countries buying oil or gas from Venezuela will face 25% tariffs on trade with the US starting April 2.
The latest tariff threat came on Monday morning at the Social Post of Truth. There, Trump attacked Venezuela for promoting migration to the US. He also criticized the government led by President Nicolas Maduro.
“Venezuela was very hostile to the United States and the freedoms we support,” Trump wrote.
“Therefore, countries that buy oil and gas from Venezuela will be forced to pay the US a 25% tariff on trade with our country.”
The tariff appears to have been designed to not only hit Venezuela, but also to hit China, the US’s major economic rival and the biggest consumer of Venezuela’s energy products.
Later at the White House Cabinet meeting, Trump said there would also be tariffs on drugs, cars and aluminum.
Already, on April 2, US trading partners were preparing for what Trump calls “mutual tariffs.”
“What’s very exciting is that April 2nd is round the corner. That’s America’s liberation day. It’s the day that other people around the world started treating America with respect,” Commerce Secretary Howard Lutnick told the cabinet meeting that it reflected the sentiment Trump has expressed in the past.
Lutnick added that on April 2, it will mark the launch of its new institution, the external revenue service, which is its job to collect duties and other import taxes.
However, critics point out that under the Department of Homeland Security, the U.S. Customs and Border Protection has already collected and processed tariffs on behalf of the federal government.
Creating a new agency may require legislative acts.
Pressure Campaign in Venezuela
Trump’s latest announcement shows the continued pressure campaign against his long-time target, Venezuela.
During his term in office from 2017 to 2021, Trump ran a “maximum pressure” campaign on the South American country, imposing severe sanctions on the government.
The Maduro government is accused of human rights abuse, including torture of opposition and detention of arbitrary detention. In his first term, Trump provided $15 million in compensation for information that led to Maduro’s arrest.
Meanwhile, Maduro accused the United States of interfering with its own country’s problems and trying to overthrow its government. He also denounced US sanctions for exacerbating the economic crisis that stemmed from a sharp drop in oil prices in the mid-2010s.
Venezuela boasts some of the world’s largest crude oil reserves. It also has the largest natural gas deposit in South America. The economy relies primarily on energy exports.
When Trump entered his second term in January, it was unclear whether he would return to his “maximum pressure” campaign. Critics speculated that Trump’s pledge to lead a “massive deportation” campaign requires some degree of cooperation with the Maduro government.
On February 1st, Trump’s special envoy, Richard Grenell, met with Maduro and asked Venezuelan leaders to accept undocumented immigrants who were deported from the United States.
Venezuela had little refusal to do so in the past. There is no diplomatic relations with the United States.
Still, Grenell left with a provisional agreement for Venezuela to accept deportation, along with the release of six Americans who were in custody within the country.
Last Saturday, Maduro gave a televised speech confirming that his country will resume accepting deportation from the United States. One such deportation flight arrived at Simon Bolivar International Airport early on Monday.
Nevertheless, Trump has sought to further limit Venezuela’s economic output, citing human rights concerns.
In February, for example, Trump said he would revoke the oil license granted to energy giant Chevron, and gave him a special permit to work with Venezuela’s state-run oil company. Chevron has been given until May 27th to close its Venezuela business.
And in his post Monday, Trump denounced Venezuela for a wave of immigrants who fled the border, saying the country intentionally sent people to the United States without evidence.
“Venezuela is intentional and deceived, masked, high levels of tens of thousands, and other criminals, many of whom are murderers and people of a very violent nature,” Trump wrote.
“Among the gang they sent to the US is Tren de Aragua, who was given the designation of a “foreign terrorist organization.” We are in the process of bringing them back to Venezuela – it’s a big job! ”
Trump has long confused migration with crime, amplifying naturalist fears of America’s criminal “aggression.”
But much of Venezuela’s escape has been spurred by its economic crisis and political crackdown. Approximately 7.7 million Venezuelans fled the country amid a shortage of basic goods like food and medicine. Most are refugees or asylum seekers.
Critics also warn that Trump’s tariff threat could backfire, creating higher prices for American consumers.
Among the countries that purchase Venezuelan petroleum products and therefore face 25% tariffs are China, Spain, Brazil and Torquier.
According to the U.S. Energy Information Agency, oil production in Venezuela has been declining for more than a decade, down from 3.2 million barrels per day in 2000 to 735,000 in September 2023.
The Oil Exporting Country (OPEC) organization estimates that Venezuela’s oil exports were valued at $13.6 billion in 2023.
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