(AFP) – US President Donald Trump announced Monday steep tariffs on imports from countries buying Venezuelan oil and gas, a punitive measure that could hit China and India, among others, and sow fresh global trade uncertainty. Since returning to the White House in January, Trump has unleashed tariffs on US allies and foes alike, attempting to strong-arm both economic and diplomatic policy.
The latest across-the-board 25 percent levies targeting direct and indirect buyers of Venezuelan oil can take effect as soon as April 2, according to an order signed Monday by Trump. The secretary of state, in consultation with other US agencies, is authorized to determine if the levy will be imposed. These could hit China and India, with experts noting that Venezuela exports oil to both those countries, as well as to the United States and Spain. Trump told reporters Monday that the 25 percent tariff would be on top of existing rates. In February, Venezuela exported some 500,000 barrels of oil per day to China, and this figure was 240,000 barrels for the United States, experts told AFP.
Trump has dubbed April 2 “Liberation Day” for the world’s biggest economy, already promising reciprocal tariffs tailored to each trading partner in an effort to remedy practices that Washington deems unfair. He earlier signaled sector-specific duties coming around the same day — but the White House said Monday it might take a narrower approach. In his Monday announcement on Truth Social involving Venezuela, the president cited “numerous reasons” for what he called a “secondary tariff.” He accused Venezuela of “purposefully and deceitfully” sending “undercover, tens of thousands of high level, and other, criminals” to the United States. He added in his post that “Venezuela has been very hostile to the United States and the Freedoms which we espouse.”
According to Trump’s order, the 25 percent tariff expires a year after the last date that a country has imported Venezuelan oil — or sooner if Washington decides so. Trump’s announcement comes as the deportation pipeline between the United States and Venezuela was suspended last month when he claimed Caracas had not lived up to a deal to quickly receive deported migrants. Venezuela subsequently said it would no longer accept the flights. But Caracas said Saturday it had reached an agreement with Washington to resume repatriations, after which nearly 200 Venezuelan citizens were deported from the United States via Honduras.
Separately Monday, the Trump administration extended US oil giant Chevron’s deadline to halt its operations in Venezuela through May 27. The company had been operating in Venezuela under a sanctions waiver.
– Tariff ‘breaks’? –
Trump’s latest move adds to tariffs he has vowed would start on or around April 2. Besides reciprocal tariffs, he has promised sweeping sector-specific duties hitting imported automobiles, pharmaceuticals, and semiconductors. As things stand, however, his plans for the day might become more targeted. Sector-specific tariffs “may or may not happen April 2,” a White House official told AFP, adding that the situation is “still fluid.” The official reaffirmed that reciprocal tariffs would take place.
But Trump told reporters Monday he might “give a lot of countries breaks” eventually, without elaborating. He separately added that he would announce car tariffs “very shortly” and those on pharmaceuticals sometime down the line. US partners are furthering talks with Washington as deadlines loom, with EU trade chief Maros Sefcovic heading to the country Tuesday to meet his American counterparts — Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer. Hopes of a narrower tariff rollout gave financial markets a boost. Treasury Secretary Scott Bessent told Fox Business’ Maria Bartiromo last week that Washington would go to trading partners with an indication of where tariff levels and non-tariff barriers are. If countries stopped their practices, Bessent added, they could potentially avoid levies. In the same interview, Bessent noted that levies would be focused on about 15 percent of countries who have trade imbalances with the United States, dubbing these a “dirty 15.”
– Beiyi SEOW and Becca MILFELD
© 2024 AFP
