- India’s Reliance Industries will reportedly suspend Venezuelan crude imports following Trump’s “secondary tariffs” announcement.
CARACAS, (venezuelanalysis.com) – China criticized the Trump administration’s “tariff war” after a recent threat to impose 25 percent “secondary tariffs” on goods from countries that purchase Venezuelan oil and gas.
“We urge the United States to cease its interference in Venezuela’s internal affairs and to abolish the unlawful unilateral sanctions imposed on the country. […] There are no winners in a trade or tariff war,” stated Guo Jiakun, a spokesperson for the Chinese foreign affairs ministry, during a regular news conference on Tuesday.
Jiakun emphasized that Washington has “long exploited” unilateral sanctions and what he termed “long-arm jurisdiction” to target other nations, calling on the US to lift its coercive measures on Venezuela. He added that the tariffs would have detrimental effects on US businesses and consumers. Recently, China, México and Canada were likewise targets of US import tariffs.
Similarly, México’s Claudia Sheinbaum condemned the tariff measure, noting that economic sanctions and blockades primarily harm citizens rather than governments. In a social media post, Cuban president Miguel Díaz-Canel criticized Washington for its ongoing efforts to “economically asphyxiate” the Venezuelan people.
On Monday, president Donald Trump signed an Executive Order establishing possible 25 percent taxes on all goods from countries that import Venezuelan energy resources, either directly or indirectly. The tariffs will be levied at the discretion of Secretary of State Marco Rubio once the Department of Commerce establishes that a country has received Venezuelan oil and gas shipments.
According to a White House statement released on Tuesday, this action aims to “sever the financial lifelines” to the Venezuelan government and convey that access to the US economy is “a privilege, not a right.”
The communiqué clarified that the tariffs, effective April 2, will remain in place for one year after the last date a country imported Venezuelan oil or may be lifted earlier at the discretion of US officials. Furthermore, tariffs imposed on China will extend to Hong Kong and Macau to prevent circumvention of these restrictions.
US officials have not provided details on how the secondary tariffs will be enforced. In recent years, Venezuelan oil traders have developed strategies to avoid tracking and disguise shipment origins.
The Trump administration added that the tax serves as retaliation for the alleged threat posed by the Tren de Aragua gang, designated a foreign terrorist organization in January. Trump accused Venezuelan authorities of refusing to take action against the criminal organization.
However, Venezuelan officials assert that they dismantled the gang’s operations in Venezuela in 2023. The Maduro government argues that the gang narrative is being used as a pretext by the Trump administration to forcibly expel Venezuelan migrants, with 238 unlawfully sent to a prison in El Salvador earlier this month.
Caracas has accused Washington of waging an economic war against the nation, violating international trade rules and human rights. Analysts predict that the recent Trump measures will hurt oil revenues, potentially triggering renewed inflation. The Maduro administration has vowed to continue strengthening the oil industry.
Since 2017, Washington has implemented financial sanctions, an export embargo, and secondary sanctions against the Caribbean nation, compelling it to offer steep discounts and resort to unreliable intermediaries to secure crude sales. After experiencing a severe economic and migration crisis, the country began to show signs of recovery in 2021, driven by various factors, including shifts in government policies and a modest increase in crude production.
The tariff threat is the latest escalation of the US economic aggression against Caracas. In early March, the US Treasury Department ordered Chevron to wind down its activities in Venezuela—including crude extraction and exports—within a 30-day period, but later extended the deadline to May 27. Chevron had been operating under Office of Foreign Assets Control (OFAC) General License 41 since November 2022.
The two moves by the Trump administration have begun impacting Venezuela’s oil sector, with a loading slowdown and shipping delays in the country’s main ports. According to reports, trade of Venezuelan crude to China stalled on Tuesday following the tariff order while Chevron began reducing its tanker fleet with only seven oil cargoes chartered this month, compared with 15 in February comprising 252,000 barrels per day (bpd).
China, the largest importer of Venezuelan oil, has yet to issue instructions to energy operators. In February, Venezuela’s state oil company PDVSA exported approximately 910,000 bpd of crude and fuel, with 503,000 bpd going to China.
For its part, India’s Reliance Industries will reportedly receive a crude shipment already on route but suspend further purchases. Last year, the Indian conglomerate obtained a green light from US authorities to purchase oil from the Caribbean producer, importing around 2 million barrels per month of Venezuelan Merey crude.
It remains unclear if European firms Repsol (Spain), Eni (Italy), Maurel & Prom (France) and Trinidad and Tobago’s state-owned National Gas Company (NGC) will likewise be ordered to wind down operations in their joint ventures with PDVSA. The US Treasury is expected to announce a review of the authorizations granted in recent years, which allowed select foreign companies to increase their activities in Venezuela.
Additionally, Europe faces the threat of tariffs on countries that purchase Venezuelan crude and gas. Spain has warned of a “forceful” response if Washington’s measure affects European producers, stating that “trade wars never benefit anyone.”
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