On March 24th Donald Trump took to Truth Social to state that any country that purchases oil or gas from Venezuela will have a 25% tariff placed on any trade with the United States. Very few details about the logistics of this have been released, but there are some things we do know. These tariffs on the countries that do business with both Venezuela and the U.S. would begin on April 2nd and would be stacked on top of the already existing tariffs; potentially resulting in a tariff over 25%.
In 2024, the highest purchasers of oil from Venezuela were the following in order: China, United States, India, and Spain. This tariff threat is in response to President Trump's belief that Venezuela is sending Tren de Aragua into the United States. They are a Venezuelan gang that has been identified as a foreign terrorist organization by the Trump administration. Many believe that at the root of it all this is another target towards China in this supposed trade war; whom purchased 270,000 barrels of oil per day from Venezuela in 2024.
The tariffs that Donald Trump so strongly and forcefully threatened during his campaign have not looked as planned during his first months in office. While the tariffs have been strongly threatened, they continue to not be enforced along with being lessened. We do not have the full answers as to why, but some suspect that seeing how poorly the top markets have been performing after the announcements have been a reason. It will be interesting to see whether or not these newly threatened tariffs do get enforced.
Article: https://www.cnbc.com/2025/03/24/trump-says-any-country-that-purchases-oil-from-venezuela-will-have-to-pay-25percent-tariff-on-trade-with-us.html
3 comments:
Every time I log onto this, I see new news about tariffs and President Trump. He believes that they are sending a gang into our country, but I feel like i never see any evidence to such claims. Makes me wonder what he truly wants out of these tariffs.
It sounds like this could hurt trade relationships and even impact global oil prices. I wonder if the U.S. economy could be affected too if these countries decide to push back or find other trading partners.
The potential impact of these tariffs, especially on countries like China and India, could escalate tensions further and disrupt global trade flows. It will be interesting to see if this policy is actually enforced or if market reactions push the administration to reconsider.
Post a Comment