- President Donald Trump said countries that purchase oil and gas from Venezuela will face a 25% tariff on the trade those nations have with the U.S.
- Trump said the tariff will take effect April 2.
- The president accused Venezuela of sending gang members to the U.S.
President Donald Trump said Monday countries that buy oil and gas from Venezuela will face a 25% tariff on any trade those nations have with the United States.
The tariff will take effect on April 2, the president said in a post on his social media platform Truth Social.
U.S. crude oil was up 71 cents, or 1.04%, at $68.99 per barrel by 11:36 am ET. Global benchmark Brent was trading 67 cents, or .93%, higher at $72.83 per barrel.
The president accused Venezuela of sending Tren de Aragua gang members to the U.S. The Trump administration has designated the group as a foreign terrorist organization.
Trump invoked the Alien Enemies Act on March 15 in response to what the president claims is an invasion by Tren de Aragua. The president said its memebers are conducting “irregular warfare” against the U.S. at the direction of Venezuela President Nicolas Maduro.
Trump has sought to increase pressure on the Maduro regime since taking office. The president said in late February that he would reverse a Biden administration decision which allowed Chevron to restart oil production in Venezuela. The Treasury department gave the oil major until April 3 to wind down its operations in Venezuela.
Trump, however, expressed openness to extending Chevron’s license to produce oil in Venezuela during a meeting at the White House last week with the oil major’s CEO Mike Wirth and other fossil fuel industry executives, people familiar with the discussions told The Wall Street Journal.
The tariffs are intended to make it more difficult for China to gain a foothold in Venezuela’s oil industry while bolstering Chevron and ensuring oil flows to the U.S., the people told the Journal.
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