S President Donald Trump’s threat to impose a 25 per cent tariff on exports from countries that buy oil from Venezuela would hit India which already fears reciprocal US taxes next month.
Trump announced on Truth Social that any country “that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25 per cent to the United States on any Trade they do with our Country”.
India imported 63,115 barrels per day (bpd) in 2024, according to reports.
It will also hit New Delhi’s plans to increase cooperation in the petroleum field with Venezuela.
Trump said that the 25 per cent tariffs will come into force on April 2, when he plans to impose reciprocal tariffs on all countries. The new threat came amid reports that the reciprocal tariffs may be less drastic and directed at certain sectors.
Trump linked the levy to his battle with Venezuela over the members of the gang, Tren de Aragua (TdA), which he designated as a “foreign terrorist organisation”.
He accused the Venezuelan government of “purposefully and deceitfully” sending over the members of the gang linked to murders and other crimes across the country and made it a part of his campaign against terrorism.
Several other countries will be hit by the tariff – and that including China, which is Venezuela’s biggest importer.
But the US is itself among the top importers of Venezuelan oil getting 228,000 bpd from it last year.
Trump’s administration gave the US oil company Chevron two months to end its operations in Venezuela that export oil to the US.
India has been looking to expand its trade with Venezuela
Venezuela’s Vice President Delcy Rodriguez, who holds the petroleum portfolio, visited India in February during the Energy India Week event.
She met with India’s Petroleum Minister Hardeep Singh Puri and other officials.
Energy Watch said Puri had sounded hopeful of increasing imports from Venezuela.
It quoted him as saying during Energy Week, “Earlier, Venezuelan oil was not available in the market because of international constraints. Now, all the signals point in the direction of those constraints being eased”.
“So, 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”, he said.
He added, “I am looking at it with great optimism to these issues getting resolved”.
But those hopes now appear dashed.
Venezuela has long been under US sanctions over what Washington said was President Nicolas Maduro.
Under former US President Joe Biden, the sanctions were eased with a general waiver, but it was rescinded last year when Maduro was accused of not holding fair elections.
Biden’s administration gave specific, restrictive waivers which Trump abolished.
