US President Donald Trump has threatened to impose a 25% tariff on countries importing oil from Venezuela.
This move could negatively affect India, which already anticipates reciprocal US taxes next month.
In a post on Truth Social, Trump declared that any country purchasing oil and/or gas from Venezuela would face a 25% tariff on any trade with the United States.
The announcement, made on Monday, targets nations that engage in commerce with Venezuela, a major oil exporter under President Nicolás Maduro’s regime.
India’s Oil Imports From Venezuela At Risk
India, which imported 63,115 barrels per day (bpd) of oil from Venezuela in 2024, could be directly impacted by Trump’s tariff threat.
The move also disrupts New Delhi’s plans to increase cooperation in the petroleum sector with Venezuela, a country with which India has been strengthening ties.
Meanwhile, the US President plans to implement the 25% tariffs on April 2, alongside his intention to impose reciprocal tariffs on all countries.
This comes amid reports suggesting that these reciprocal tariffs may target specific sectors rather than applied broadly.
The new tariff is linked to Trump’s broader geopolitical battle with Venezuela, particularly over the gang, Tren de Aragua (TdA), which he labeled a ‘foreign terrorist organization.’
US President Trump’s Campaign Against Venezuela And Terrorism
US President Trump’s administration has connected the tariff threat to its ongoing campaign against Venezuela, accusing its government of deceitfully sending members of the TdA to the US, allegedly involved in various criminal activities.
This is part of the broader narrative of the US’s fight against international terrorism.
The new tariff will affect several countries, including China, which is Venezuela’s biggest oil importer.
However, the US itself is also a significant importer of Venezuelan oil, having received 228,000 bpd from the country last year.
Additionally, the Trump administration recently ordered the US oil company Chevron to cease its operations in Venezuela, impacting the flow of Venezuelan oil to the US.
India’s Efforts To Strengthen Ties With Venezuela
India has been working to increase its trade with Venezuela, especially in the petroleum sector.
In February, Venezuela’s Vice President Delcy Rodríguez, who holds the petroleum portfolio, visited India during the Energy India Week event.
During her visit, she met with India’s Petroleum Minister Hardeep Singh Puri and other officials, signaling a possible increase in oil imports from Venezuela.
India’s Petroleum Minister Puri had expressed hope that Venezuela’s oil would be more accessible in the international market due to easing international constraints.
He optimistically stated, “If your question to me is can you expect more oil to come from Venezuela, my answer will be, yes, one can, provided these processes are sorted out.”
However, following Trump’s tariff threat, these prospects now seem uncertain.
Venezuela’s Long-standing Struggles With US Sanctions
Venezuela has faced US sanctions for years, primarily due to President Nicolás Maduro’s administration.
Former US President Joe Biden had eased sanctions through a general waiver, but the US rescinded the waiver last year after accusing Maduro of failing to hold free and fair elections.
Trump’s administration, unlike Biden’s, has rolled back any such exceptions, further complicating Venezuela’s trade relationships.
With these new developments, India’s hopes for securing a stable source of oil from Venezuela now appear to be in jeopardy.
The tariffs could hinder the country’s efforts to diversify its oil imports and increase cooperation with the Venezuelan government in the energy sector.
Trump’s tariff threat could impact India’s oil strategy, but its full effect remains unclear as the country navigates complex international relations and energy security challenges.
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