President Trump announced a 25% tariff on countries buying Venezuelan oil, starting April 2. Venezuela will also face additional tariffs due to links with a gang. The policy signals a tougher stance against China, which imports most of Venezuela’s oil. The market reacted positively, despite ongoing concerns over a trade war affecting growth and inflation.

President Donald Trump announced on Monday his intention to impose a 25% tariff on all imports from countries that purchase oil or gas from Venezuela. This announcement was made via a post on Truth Social, in which Trump accused Venezuela of being “very hostile” to the United States. The new tariffs will come into effect starting April 2, impacting all trade from these nations to the U.S.

Venezuela will also face a “Secondary” tariff due to its association with the gang Tren de Aragua, as indicated by Trump. The administration has commenced deportations of immigrants identified as gang members who have illegally entered the United States. Trump’s tariff proposal signifies a potential escalation of actions against China, Venezuela’s largest consumer of oil.

In addition to the 25% tariff on Venezuelan oil purchases, Trump announced plans to implement tariffs that align with those charged by other countries, designating April 2 as “LIBERATION DAY.” He has previously imposed a universal 20% tariff on imports from China to combat the illegal trade in fentanyl. The tariffs could also affect Mexico and Canada, the United States’ primary trading partners.

On the day of the announcement, the U.S. stock market saw an uptick as investors anticipated that the tariff measures might be more targeted than formerly expected. Despite this, the S&P 500 index has experienced a decline this year amid concerns related to the potential impacts of a trade war on economic growth and inflation.

Trump indicated that his social media post serves as formal notification to the Department of Homeland Security and other enforcement agencies regarding the planned policy. Notably, a 2024 analysis from the U.S. Energy Information Administration reveals that China accounted for 68% of Venezuelan oil exports in 2023, with Spain, Russia, Singapore, and Vietnam also among the recipients. In January, the U.S. imported 8.6 million barrels of oil from Venezuela according to Census Bureau data.

In summary, President Trump’s proposed tariffs on countries purchasing Venezuelan oil reflect a significant shift in trade policy, targeting Venezuela’s hostile actions against the U.S. The expected implementation of these tariffs on April 2 may have broad implications for international trade and economic relations, particularly affecting China and other nations receiving Venezuelan oil. As the U.S. stock market reacts to these developments, concerns about potential economic impacts remain prominent.

Original Source: www.newsday.com

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