In an effort to put the Venezuela’s Maduro under pressure, the Trump administration announced a 25% trading tariff on goods from countries which purchase Venezuelan oil. Venezuelan oil is thicker (more difficult to refine), and the nation’s economic conditions have left it unable to operate its’ domestic refineries — creating an attractive bargain for energy hungry players like China.
A 45% tariff on Chinese good entering the United States is likely to slow the flow of purchases and result in goods inflation across several categories. If sustained, consumer electronics, medical supplies, toys, & apparel would see the largest spike in price.
Sources & Excerpts
-
Trump says countries that purchase oil from Venezuela will pay 25% tariff on any trade with U.S.
🔗
"the U.S. will impose 25% tariffs on countries that buy oil and gas from Venezuela, as he seeks to increase pressure on President Nicolas Maduro and China.
Countries that buy oil and gas from Venezuela will face tariffs on any trade they have with the U.S., Trump said in a post on his social media platform Truth Social. The tariffs take effect on April 2, the president said." -
Trump to hit Venezuelan oil buyers with tariff, extends Chevron's wind down
🔗
"The 25% tariff to be imposed on buyers of Venezuelan oil will take effect on April 2 and would be combined with any existing tariffs, according to the executive order. The tariff will expire one year after the country last imported Venezuelan oil, the order said.
The tariff would apply to countries that buy Venezuela oil through third parties, the order said.
Oil prices rose 1% on Trump's tariff announcement"