President Donald Trump said Monday he would be placing a 25 per cent tariff on all imports from any country that buys oil or gas from Venezuela as well as imposing new tariffs on the South American country itself. In a Truth Social post, Trump said Venezuela has been "very hostile" to the US and countries purchasing oil from it will be forced to pay the tariff on all their trade to the US starting April 2. The tariffs would most likely add to the taxes facing China, which in 2023 bought 68 per cent of the oil exported by Venezuela, according to a 2024 analysis by the US Energy Information Administration. Spain, India, Russia, Singapore and Vietnam are also among the countries receiving oil from Venezuela, the report shows. But even the United States " despite its sanctions against Venezuela " still imports oil from that country.

In January, the United States imported 8.6 million barrels of oil from Venezuela, according to the Census Bureau. And on Monday, the Treasury Department issued an extension for US-based Chevron Corp.'s lease to pump and export Venezuelan oil until May 27. The extension, known as a general license, exempts the country from economic sanctions and allows it to continue to pump oil. In February, Trump had announced an end to the Chevron-Venezuela relationship, in what became a financial lifeline for the South American country. Trump's latest tariffs threat suggests the administration may be willing to take bolder moves against China in its efforts to rewrite the guidelines of the global economy. The Trump administration has already levied universal 20 per cent tariffs on imports from China as an effort to crackdown on the illicit trade in fentanyl, but another 25% import tax could further escalate tensions between the world's two largest economies.