Washington, D.C.—In a dramatic move that sent shockwaves through global markets, U.S. President Donald Trump has declared a 25% tariff on any country purchasing oil from Venezuela, set to take effect on April 2. The announcement, made via Truth Social on Monday, immediately triggered a 1.5% spike in crude oil futures and left major oil-consuming nations scrambling for solutions.
The tariff is aimed at punishing Venezuela for what Trump described as sending “tens of thousands” of violent migrants to the United States. The decision comes just weeks after Trump invoked the 1798 Alien Enemies Act to expedite the deportation of alleged Venezuelan gang members.
Chevron Caught in the Crossfire
As part of a parallel move, the U.S. government extended a special license allowing Chevron to operate in Venezuela—but only for exports to the United States—until May 27. This slight reprieve for the oil giant contrasts sharply with the intensified pressure on Venezuela’s biggest oil customers, particularly China.
China, which already faces sweeping U.S. tariffs, is Venezuela’s largest buyer of crude, receiving over 500,000 barrels per day—more than half of the country’s total exports. With this new tariff, Beijing and other key importers, including Spain, Italy, Cuba, and India, could be forced to rethink their Venezuelan oil purchases or face heavy penalties when trading with the U.S.
Maduro Stays Silent as Markets React
While Venezuela’s government has yet to issue an official response, the economic impact is already being felt. In the past, similar tariff impositions forced Venezuelan state-run oil company PDVSA to offer deep price discounts just to keep exports flowing. Now, with fresh U.S. restrictions looming, oil traders are bracing for more market volatility.
The timing of Trump’s tariff announcement is particularly striking, arriving just as Shell Plc gears up to begin natural gas production at Venezuela’s Dragon gas field in 2026—one year ahead of schedule. With U.S.-Venezuela energy relations becoming increasingly tangled, the next few months could prove pivotal for the global oil market.
