Trump's Secondary Tariff: Venezuelan Oil Trade in Turmoil

President Trump announced a 25% tariff on countries buying Venezuelan oil if they trade with the U.S. This action, effective April 2, aims to pressure Venezuela over alleged violent migrants in the U.S. The tariff news boosted crude oil futures, complicating Venezuela's major trade relations.

U.S. President Donald Trump announced a new policy imposing a 25% tariff on countries buying oil or gas from Venezuela if they engage in trade with the United States. This measure, dubbed a "secondary tariff," is set to take effect on April 2, as Trump revealed in a Truth Social post.

The decision is motivated by Venezuela allegedly sending "tens of thousands" of individuals with a "very violent nature" into the United States. The announcement led to a nearly 1.5% spike in benchmark crude oil futures.

In a related move, Trump invoked the 1798 Alien Enemies Act this month to deport purported Venezuelan gang members without final orders from immigration judges. This tariff situation complicates Venezuela's export relations significantly, as major importers including China, Spain, Italy, Cuba, and India may face higher trade costs with the implementation of these new U.S. tariffs.

(With inputs from agencies.)