Countries that buy or sell gasoline from Venezuela soon will be looking at a 25% tariff on goods they export to the US, President Trump said in a social media post Monday. The move appears to be punishment for what reasons that Trump said include sending thousands of criminal migrants, "many of whom are murderers and people of a very violent nature" to the US. He provided no evidence for that claim, USA Today reports. The tariff would take effect April 2, when his reciprocal tariffs kick in.
"In addition, Venezuela has been very hostile to the United States and the Freedoms which we espouse," Trump wrote. "Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country." The No. 1 destination for Venezuelan crude last year was China, which bought 68% of the export, followed by the US at 23%. The latest tariff announcement "appears to be one more action targeting China," an oil industry analyst tells CNBC.
At the same time, the Treasury Department extended Chevron's license to produce oil in Venezuela until late May, dropping the April 3 deadline to stop. Trump had said last month that he'd overturn the decision to allow the oil company to resume production there, which the Biden administration had approved, per CNBC. CEO Mike Wirth had lobbied Trump at the White House last week for the extension, per the Wall Street Journal. (More Venezuela stories.)