President Donald Trump on Monday announced a sharp new move aimed at Venezuela’s oil industry. Any country that continues to buy oil or gas from the South American nation will now face a 25% tariff on its U.S. trade. The announcement adds another layer of pressure to President Nicolás Maduro’s regime, even as the administration gave U.S. oil giant Chevron a longer runway to exit the country.
Earlier this month, the Treasury Department had set a 30-day deadline for Chevron to wind down its operations in Venezuela. But following Trump’s latest announcement, the department extended that deadline by another seven weeks, pushing it to May 27. The change gives Chevron more time to wind down while continuing to get paid for deliveries already en route to U.S. buyers.
Trump said the tariff, which he dubbed a “secondary tariff,” will go into effect on April 2. He framed it as a response to what he called Venezuela’s role in sending “tens of thousands” of violent individuals to the United States. While the White House hasn’t detailed how enforcement would work, the move is clearly aimed at countries like China, the largest buyer of Venezuelan oil, as well as India, Spain, Italy, and Cuba.
The policy shift reflects a balancing act within Trump’s team. Some officials, like Secretary of State Marco Rubio, want to increase pressure on Maduro. Others worry about fully driving Western companies like Chevron out of Venezuela, which could hand over even more leverage to geopolitical rivals. The compromise, according to energy policy expert David Goldwyn, offers a “sweet spot” between both camps.
Punitive tariffs on foreign buyers may end up having the same effect as traditional sanctions by making Venezuela’s oil more expensive to offload, thereby forcing PDVSA, the country’s state oil company, to sell at steeper discounts. This would tighten Venezuela’s revenue stream at a time when crude exports are critical for its fragile economy.
Venezuela’s response was swift and defiant. The government issued a statement rejecting what it called a “new aggression” from the U.S., slamming the tariff as illegal and desperate. Maduro’s administration claimed the policy would only reinforce its resolve and signaled no intention to change course.
The announcement rattled oil markets, sending prices up about 1%, though gains were held in check by the Chevron extension. Venezuela is heavily reliant on oil, with more than half of its February crude exports, about 503,000 barrels per day headed to China. With that country already facing U.S. tariffs, it’s unclear if it will continue to risk exposure for Venezuelan heavy crude when alternatives like Russian oil are readily available.
Goldwyn noted the irony of the situation: rather than isolating bad actors, the new policy could end up boosting demand for Russian oil, especially from countries unwilling to absorb the cost of a 25% surcharge. Meanwhile, PDVSA is reportedly preparing a reorganization of operations at its flagship joint venture with Chevron, the Petropiar project in the Orinoco Belt, to ensure exports can continue.
As Trump continues to link foreign policy with immigration and energy security, the latest maneuver marks another bold step in his broader campaign to reshape global trade and pressure authoritarian regimes. Whether it succeeds in pushing Venezuela toward reform, or just shifts oil demand elsewhere remains to be seen.
