How will Trump’s decision to impose tariff on countries buying Venezuelan oil impact India

Trump announces 25% tariff on oil/gas buyers from Venezuela, plans to impose fresh tariffs on Venezuela, impacting India's oil trade.

Latest in the series of Donald Trump’s tariff-related announcements, the U.S. President on Monday (March 24, 2025) said he would be imposing a 25% tariff on all imports from those countries that buy oil or gas from Venezuela. He also announced plans to impose fresh tariffs on the South American country itself.

Mr. Trump’s statement comes just ahead of the April 2 date, from when the U.S. President intends to levy reciprocal tariffs on on numerous trading partners, including India. Additionally, a U.S. delegation, headed by Brendan Lynch, the U.S. Trade Representative’s point-person for South and Central Asia, is set to hold discussions with its Indian counterpart in New Delhi.

Also read: Why has India promised to buy more U.S. oil? | Explained

India’s current import dependence when it comes to crude oil, which includes supply from Venezuela, means Mr. Trump’s latest plans will add to the country’s tariff burden.

Stating that Venezuela has been “very hostile” to the United States, Mr. Trump followed it up by saying that those countries purchasing oil and gas from Venezuela will have pay 25% tariff on all their trade to the U.S. starting April 2. Mr. Trump added that Venezuela will face a “Secondary” tariff because it is the home to the gang Tren de Aragua. The Trump administration is deporting immigrants that it claims are members of that gang who illegally crossed into the United States.

However, it must be noted that the U.S. itself, currently, continues to be a purchaser of Venezuelan oil. On Monday, the Treasury Department issued an extension for U.S.-based Chevron Corp.’s lease to pump and export Venezuelan oil until May 27. The extension, known as a general license, exempts the country from economic sanctions and allows it to continue to pump oil.

Prior to sanctioning Venezuela in 2019, according to a report by the U.S. Energy Information Administration, the country was the largest importer of Venezuela’s crude oil. “Most of the remaining crude oil,” it said, “was destined for India, China, and Europe.”