Viewing Venezuelans as a threat to the United States, US President Donald Trump signed an executive order on Monday to impose tariffs on countries that purchase oil from Venezuela.
Trump stated that the Venezuelan’s government, led by Nicolás Maduro, purposefully sent criminals, such as the member of the Tren de Aragua gang, a transnational criminal organization, to the US.
Therefore, any country that imports Venezuelan oil through any means will face a tariff of 25 percent when they deliver goods to the US, starting on or after April 2.
Moreover, the order gives power to the secretaries of state, Treasury, commerce and homeland security, as well as the trade representative, to decide by themself which goods will face the tariff.
As for the deadline, Trump stated that the tariff will last for one year after the day that nation imported the Venezuelan oil for the last time, or earlier, depending on the Trump administration.
According to Rystad Energy, a research and consulting firm, the United States and China are Venezuelan oil’s top customers in recent months. The company analysts stated that China may seek an alternative.
Meanwhile, the US has been reducing the purchase ever since the Trump administration threatened to revoke the license of its second largest oil company, Chevron. The oil company currently has two months to continue its operation in Venezuela.
Some experts question whether this tariff is well enforced enough, citing the weak tariff the US imposed on the nation associated with Russia and Iran. However, others stated that this strategy may help the US avoid imposing financial sanctions on foreign banks that could cause financial instability.
