China’s Oil Trade with Venezuela Stalls Amid U.S. Tariff Threats
Following President Trump’s tariff threat on Venezuelan oil buyers, China’s oil trade with Venezuela has stopped. With tariffs potentially placed on goods from countries buying Venezuelan oil, Chinese traders are hesitant to proceed. China condemned this U.S. decision, asserting its opposition to such unilateral sanctions and emphasizing potential economic repercussions for American businesses.
China’s oil trade with Venezuela has come to a halt following U.S. President Donald Trump’s announcement of potential 25% tariffs on goods from countries purchasing Venezuelan oil. This startling executive order left traders and refiners in China in a state of uncertainty as they await guidance from Beijing, according to trading sources from Reuters.
As the largest consumer of Venezuelan oil, China is estimated to import approximately 500,000 barrels per day through various channels, many of which are less than transparent. Notably, a significant portion of this oil is often rebranded as originating from Malaysia after being shipped in Asian waters.
In light of the recent U.S. sanctions and trade policy adjustments, some Chinese importers are now hesitating to engage with Venezuelan oil. A senior trader within the sector expressed concern, stating, “The worst thing in the oil market is uncertainty. We won’t dare touch the oil for now.”
Trump’s executive order outlines that from April 2, 2025, a 25% tariff will apply to all goods imported into the U.S. from any nation sourcing Venezuelan oil, whether directly or indirectly. This new tariff is in addition to existing tariffs, including the current 20% tariff on goods imported from China.
U.S. Secretary of State Marco Rubio further added that countries allowing companies to operate in Venezuela would also face new sanctions and tariffs. However, China has seemingly downplayed the implications of this order. Guo Jiakun, a spokesperson for the Chinese Foreign Ministry, stated that the U.S. is improperly exercising unilateral sanctions and interfering in sovereign matters, asserting that “China firmly opposes such actions.”
Furthermore, Guo remarked, “Trade wars and tariff wars have no winners. Imposing additional tariffs will only inflict greater losses on American businesses and consumers.”
In conclusion, the potential U.S. tariffs against nations purchasing Venezuelan oil have stalled China’s trade with Venezuela, causing considerable uncertainty among traders. Despite this, China has expressed strong opposition to U.S. sanctions and reiterated its commitment to continue its oil imports. The situation reflects the broader complexities of international trade and the impact of unilateral actions taken by the U.S. government on global markets.
Original Source: oilprice.com
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