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Dante Raeburn
Trump Imposes 25% Tariff on Countries Trading Venezuelan Oil or Gas
President Trump announced a 25% tariff on countries purchasing Venezuelan oil or gas effective April 2, citing public safety concerns. This follows the termination of Chevron’s license in Venezuela and ongoing issues with the Maduro government. China is the primary buyer of Venezuelan oil, with imports expected to decline due to recent US tariffs.
On April 2, US President Donald Trump declared that countries purchasing oil or gas from Venezuela would incur a 25% tariff on all trades with the United States. Trump’s decision stems from his assertion that Venezuela has sent numerous individuals with violent tendencies to the US.
Recently, Trump also ended a special license that allowed Chevron to operate in Venezuelan waters, citing a lack of electoral reform and unsatisfactory progress in returning migrants under President Nicolas Maduro’s regime. This action follows his invocation of the 1798 Alien Enemies Act for the deportation of certain Venezuelan gang members without formal immigration proceedings.
China, the largest buyer of Venezuelan oil, received about 503,000 barrels of crude daily in February, accounting for 55% of Venezuela’s total oil exports. Previous US tariffs on imports of specific Venezuelan oil types have decreased quantities sold to China, compelling PDVSA, the state-run oil company, to offer greater price discounts to sustain sales in this key market.
Other countries that consume Venezuelan oil include Spain, Italy, Cuba, and India. Unless Trump prolongs the wind-down period, US imports of Venezuelan oil will conclude in early April.
At this time, there has been no response from the Maduro administration regarding these recent developments.
In summary, President Trump has instituted a significant tariff on countries trading Venezuelan oil, aiming to pressure the Maduro government amid concerns over violence associated with Venezuelan migrants. This tariff follows the revocation of Chevron’s operational license and highlights the complexities of Venezuela’s oil market amidst international sanctions. Additionally, China remains a crucial importer of Venezuelan crude, which has seen impacts due to prior tariff measures.
Original Source: tribune.com.pk
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