Despite American Dependence On Venezuelan Crude, Trump Announces 25% Charge On other Nations Buying Maduro's Oil and Gas

 

Yiannis Damellos

In a bold move to increase economic pressure on the Venezuelan government and use it as leverage against America's competitors, President Donald Trump announced today the implementation of a 25% tariff on nations importing Venezuelan oil and gas. He justified this decision by highlighting concerns over migration and the presence of criminal gang members in the United States. 

 “Any country that purchases oil and/or gas from Venezuela will be forced to pay a tariff of 25% to the United States for any trade they do with our country. All documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA,” Trump wrote Monday on his social media site.

The intention behind the charge is to discourage countries from doing business with Venezuela and to support the opposition leaders and movements seeking to topple the Maduro government. By imposing such tariffs, the Trump administration hopes to limit Venezuela's oil revenue, which is critical for the regime's survival.

Additionally, this policy aligns with the broader U.S. strategy of applying sanctions and economic pressure on nations and regimes that do not align with U.S. interests, especially in Latin America. The announcement may also be meant to rally support among U.S. allies and reinforce a united front against the Maduro government.

Which countries import oil from Venezuela?

Several European countries have historically imported oil from Venezuela, though the volume of imports has fluctuated due to various factors such as U.S. sanctions, economic conditions in Venezuela, and shifts in the import strategies of EU nations. 

For example, Spain has traditionally been one of the largest importers of Venezuelan oil in Europe. Spanish refineries have relied on Venezuelan crude due to historical ties and the suitability of Venezuelan oil for certain refining processes. Spain has reported significant increases in its crude oil imports from Venezuela. In 2024, Spain imported approximately 2.6 million tons of crude oil from Venezuela, marking the highest levels in nearly two decades [2].

Italy has also imported Venezuelan oil, particularly through energy companies that have historically engaged in partnerships with the Venezuelan state oil company, PDVSA. Additionally, France has had interests in Venezuelan oil, as French energy companies have historically been involved in its oil sector, while Germany and the Netherlands also have imported Venezuelan oil in the past.

In addition to the European Union, several other major countries import oil and gas from Venezuela. 

China is one of the largest importers of Venezuelan crude oil, with significant volumes imported to support its energy needs. India has also increased its imports of Venezuelan oil, particularly as it seeks to diversify its crude oil sources. Finally, Russia has been involved in the Venezuelan oil sector and has imported oil, often as part of bilateral agreements.

In Mesoamerica, historically, Cuba has imported crude oil from Venezuela under favorable terms, including barter agreements, while smaller volumes of Venezuelan oil have been exported to various countries in Latin America and the Caribbean, as well as to nations in Asia and Africa, depending on market conditions and availability.

Finally, Turkey has engaged in trade with Venezuela, including the import of oil, often as a means of supporting Venezuelan production despite U.S. sanctions.

US still imports Venezuelan oil as well

Venezuela has the largest proven oil reserves on Earth, but its energy prowess is as much about quality as quantity. Despite Trump's rants, refineries on the US Gulf Coast process Venezuelan crude by the hundreds of thousands of barrels per day. Volumes hit a six-year high in December, according to Kpler, reaching approximately 300 kbd – a 150 kbd year-on-year increase.

The Gulf Coast, or PADD 3, is crucial to the United States’ energy supremacy. If flows of Venezuelan crude to the region were disrupted, refiners like Chevron and Valero would have to shift to lower-quality, less reliable suppliers—an undesirable prospect.

As of December 2024, the United States imported approximately 296,000 barrels per day (b/d) of crude oil from Venezuela. This volume reflects a significant increase in oil imports compared to previous years, as the U.S. has gradually resumed imports following the easing of some sanctions against Venezuela's oil sector. In total, the U.S. imported around 30 million barrels of oil from Venezuela in 2023, which averaged about 85,000 barrels per day during that year [1][3].

If the US still imports Venezuelan oil why does Trump dictate other countries to stop buying it or what?

This is a multifaceted tariff war, and, as such, this tariff could encourage countries to seek alternative sources of oil and gas, potentially benefiting U.S. energy exports. By making Venezuelan oil less attractive, the U.S. could foster greater demand for its own energy production.

The move may also be a response to broader geopolitical challenges, such as rising oil prices and the influence of countries like Russia and China in Latin America. By taking a strong stance against Venezuelan oil exports, the U.S. aims to counteract these influences.

Yet, the primary objective of imposing a tariff on nations buying Venezuelan oil and gas is to exert additional economic pressure on the Maduro regime. By increasing the cost for countries that rely on Venezuelan energy, the U.S. aims to reduce Venezuela's oil revenue and destabilize the government, even toppling it soon.

Lastly, the announcement can be viewed through a domestic political lens. Making aggressive moves against Venezuela may appeal to certain voter bases that prioritize a strong stance on foreign policy and democracy promotion. This is unlikely though because Trump is by definition not a Democrat...