US President Donald Trump’s threat to impose a 25% tariff on exports from countries purchasing oil from Venezuela could have serious implications for India, which is already bracing for potential reciprocal US taxes next month.
Trump announced on Truth Social on Monday that any country “that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25 per cent to the United States on any Trade they do with our Country.”
India, which imported 63,115 barrels per day (bpd) from Venezuela in 2024, may face economic consequences if the tariff is implemented. The move could also impact New Delhi’s plans to strengthen cooperation with Venezuela in the petroleum sector.
Tariffs Set to Take Effect April 2
Trump stated that the 25% tariffs would take effect on April 2, coinciding with his plan to introduce reciprocal tariffs on all countries. While reports suggest that these reciprocal tariffs may be more targeted and sector-specific, the threat against Venezuela’s oil trade adds another layer of economic uncertainty.
Trump linked the tariff measure to his broader conflict with Venezuela, particularly concerning the Tren de Aragua (TdA) gang, which he designated as a “foreign terrorist organization.” He accused the Venezuelan government of “purposefully and deceitfully” sending gang members—allegedly involved in crimes such as murder—into the US.
Impact on Global Oil Trade
Several countries, including China—Venezuela’s largest oil importer—could be affected by the new tariffs. However, the US itself remains a major importer of Venezuelan oil, receiving 228,000 bpd last year.
Trump’s administration has given US oil giant Chevron two months to wind down its operations in Venezuela, effectively cutting off oil exports to the US.
India’s Plans for Venezuelan Oil Expansion
India has been seeking to expand trade with Venezuela, particularly in the energy sector. In February, Venezuela’s Vice President Delcy Rodríguez, who also oversees the petroleum sector, visited India during the Energy India Week event. She met with India’s Petroleum Minister Hardeep Singh Puri and other officials to discuss potential collaboration.
Energy Watch reported that Puri had expressed optimism about increasing Venezuelan oil imports, stating during Energy Week, “Earlier, Venezuelan oil was not available in the market because of international constraints. Now, all the signals point in the direction of those constraints being eased.”
When asked about the possibility of increasing oil imports from Venezuela, Puri responded, “Yes, one can, provided these processes are sorted out,” adding that he was “optimistic” about a resolution. However, Trump’s latest tariff threat now casts doubt on those expectations.
US Sanctions and Policy Shifts
Venezuela has been under US sanctions for years due to concerns over President Nicolás Maduro’s government. Under former US President Joe Biden, some restrictions were eased through a general waiver. However, the waiver was rescinded last year after Maduro was accused of failing to conduct fair elections.
Biden’s administration later introduced specific, limited waivers—measures that Trump has now abolished, signaling a tougher stance against Venezuela.
With the April 2 deadline approaching, India and other affected countries may need to reassess their trade policies in light of the potential economic impact of these new tariffs.
– IANS