Trump's Tariff Tightrope: Targeting Venezuela's Oil Trade

President Donald Trump announced a 25% tariff on countries buying Venezuelan oil while extending Chevron's deadline to cease operations there. This adds pressure on Venezuelan oil buyers, though enforcement remains uncertain. The move may reshape global oil demand, potentially increasing demand for Russian oil.

On Monday, President Donald Trump declared that any nation purchasing oil or gas from Venezuela would face a 25% tariff on trades with the U.S. In contrast, his administration granted U.S. producer Chevron additional time to exit its operations in Venezuela, easing an earlier pressure to wind down swiftly.

The U.S. Treasury announced that the license permitting Chevron to operate in Venezuela would now expire on May 27, instead of the initial deadline. This announcement coincided with Trump's new tariff policy, which he justified by citing violent crime linked to Venezuelan migrants in the U.S.

Analysts indicate that the dual strategies target international buyers of Venezuelan crude, like China. However, the enforcement of these tariffs remains questionable. David Goldwyn of Goldwyn Global Strategies noted the move allows a balance within the Trump administration between exerting pressure on Maduro while retaining Western corporate interests.

(With inputs from agencies.)