Trump's 25% Tariff Warning on Venezuelan Oil Imports Could Impact India
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Synopsis
Trump's recent tariff threat on Venezuelan oil imports poses significant challenges for India, which is already wary of potential US retaliatory taxes. The impending 25% tariff, effective April 2, complicates India's plans for increased cooperation with Venezuela in the oil sector.
Key Takeaways
- Trump threatens a 25% tariff on Venezuelan oil imports.
- India fears possible US retaliatory tariffs.
- Current oil imports from Venezuela are approximately 63,115 bpd.
- New Delhi's plans for cooperation with Venezuela could be jeopardized.
- The tariffs take effect on April 2.
New York, March 25 (NationPress) US President Donald Trump has issued a warning regarding the implementation of a 25% tariff on countries that import oil from Venezuela, which poses a significant challenge for India, already apprehensive about potential retaliatory taxes from the US next month. Trump made this announcement on Truth Social on Monday, stating that any nation that engages in the purchase of oil or gas from Venezuela will incur a 25% tariff on any trade with the United States.
In 2024, India imported approximately 63,115 barrels per day (bpd), as per reports.
This tariff will adversely affect New Delhi's ambitions to strengthen its collaboration in the oil sector with Venezuela.
Trump revealed that these tariffs are set to take effect on April 2, coinciding with his plans to introduce reciprocal tariffs on all nations. The latest threat arises amidst indications that the reciprocal tariffs may be more targeted and less severe.
In his comments, Trump linked the tariff to his ongoing confrontation with Venezuela concerning the activities of the gang, Tren de Aragua (TdA), which he has labeled a “foreign terrorist organization”.
He accused the Venezuelan administration of deliberately and deceitfully facilitating the presence of gang members who are associated with violent crimes across the nation, integrating this issue into his broader anti-terrorism campaign.
Other nations, including China, Venezuela's largest oil buyer, will also be affected by this tariff.
Interestingly, the US itself ranks as one of the top importers of Venezuelan oil, having imported 228,000 bpd last year.
The Trump administration had given the US oil firm Chemron a two-month deadline to cease its operations in Venezuela that involve oil exports to the US.
India has been keen on boosting its trade ties with Venezuela.
Delcy Rodriguez, the Vice President of Venezuela responsible for the petroleum sector, visited India in February during the Energy India Week event.
During her visit, she engaged with India’s Petroleum Minister Hardeep Singh Puri and other officials.
As reported by Energy Watch, Puri expressed optimism about increasing imports from Venezuela.
He noted during the Energy Week event, “Previously, Venezuelan oil was unavailable in the market due to international restrictions. Now, all indications suggest that these restrictions are being lifted.”
“So, if you ask me if more oil from Venezuela is likely, I confidently say yes, provided these processes are resolved,” he mentioned.
He added, “I am looking at this situation with great optimism for a resolution.”
However, these expectations now seem diminished.
Venezuela has been under ongoing US sanctions due to allegations against President Nicolas Maduro.
Under the previous administration of Joe Biden, some sanctions were relaxed through a general waiver, but this was revoked last year when Maduro was charged with failing to conduct fair elections.
The Biden administration had provided specific restrictive waivers that Trump later abolished.
