Trump’s 25% tariff threat on Venezuela oil imports could impact India
US President Donald Trump has threatened to impose a 25% tariff on exports from countries that purchase oil and gas from Venezuela, a move that could significantly impact India. The announcement was made on Truth Social, where Trump stated that any nation buying Venezuelan energy would face the tariff on all trade with the United States.
India, which imported 63,115 barrels per day (bpd) from Venezuela in 2024, is now facing potential economic consequences. This tariff could also disrupt India’s plans to strengthen petroleum cooperation with Venezuela.
Trump’s proposed tariff, set to take effect on April 2, is part of his broader plan to impose reciprocal tariffs on all countries. However, reports suggest that these tariffs might be selectively targeted at specific sectors rather than being universally applied.
The former president tied the tariff to his crackdown on Venezuela-based criminal organization Tren de Aragua (TdA), which he has designated a “foreign terrorist organization.” Trump accused the Venezuelan government of deliberately sending TdA members to the US, linking the new levy to his anti-terrorism agenda.
Other major oil importers, including China, will also be affected. Interestingly, the US itself imported 228,000 bpd from Venezuela last year. In a related move, the Trump administration has directed the US oil company Chevron to wind down its Venezuelan operations within two months.
India has been actively looking to expand trade with Venezuela. In February, Venezuelan Vice President Delcy Rodriguez visited India during the Energy India Week event and held discussions with Petroleum Minister Hardeep Singh Puri. Puri expressed optimism about increasing oil imports from Venezuela, highlighting the easing of international constraints. However, these hopes now seem uncertain due to Trump’s tariff threat.
Venezuela has been under US sanctions for years due to concerns over President Nicolas Maduro’s leadership. While the Biden administration temporarily eased restrictions, they were reinstated last year following allegations of unfair elections. Trump has now abolished the limited waivers granted under Biden, further tightening economic pressure on Venezuela.
