U.S. President Donald Trump has escalated economic pressure on Venezuela by imposing a 25% tariff on countries purchasing its oil, while granting Chevron an extended deadline to phase out operations in the sanctioned nation.
The move, announced via executive order on Monday, targets buyers of Venezuelan crude—particularly China, India, and European nations—and takes effect April 2. Meanwhile, the Treasury Department extended Chevron’s wind-down period to May 27, allowing the U.S. oil giant to continue limited operations.
Trump’s decision follows accusations that Venezuela’s President Nicolás Maduro has failed to enact electoral reforms and curb migration. The administration claims Venezuela has sent “tens of thousands” of migrants with a “very violent nature” to the U.S., prompting stricter measures.
Key Implications:
The tariff could force Venezuela to sell oil at steep discounts, mirroring the impact of secondary sanctions from Trump’s first term.
Chevron’s extension ensures continued payments for oil shipments to U.S. refiners, preventing a sudden supply disruption.
Analysts warn the policy may divert buyers to Russian crude, as China and India could avoid Venezuelan oil to evade U.S. tariffs.
Venezuela’s government condemned the move as “illegal and desperate,” vowing resilience against U.S. sanctions. Meanwhile, experts suggest the policy balances competing U.S. interests—pressuring Maduro while avoiding a complete exit of Western firms.