President Trump issued an executive order on Monday to exist against countries that buy Venezuelan oil by impending these nations on the United States, and claimed that Venezuela had sent criminals and murderers “intentionally and fraudulently” to America.
In the order, the president said the government of Nicolás Maduro, the Venezuelan leader, and the Tren de Aragua gang, a transnational criminal organization, were a threat to the national security and foreign policy of the United States.
On or after April 2, a tariff of 25 percent for all goods imported into the United States can be imposed from every country that imports Venezuelan oil, either directly or indirectly imposed by third parties, the order says.
The order states that the secretaries of the Ministry of State, Finance, Trade and Homeland Security as well as the sales representative would determine which tariffs impose. The tariffs would expire a year after the last date in which the Venezuelan oil was imported, or earlier if the Trump officers decided.
This unconventional use of tariffs could further disturb the global oil trade because buyers of Venezuelan oil are looking for alternatives. According to Rystad Energy, a research and consulting company, the United States and China have been the top buyers of Venezuelan oil in recent months. India and Spain also buy a small amount of crude oil from the South American country.
But in China's case, Venezuela's oil makes such a small part of the country's imports that the risk of higher tariffs will probably lead to china looking for oil elsewhere, said Jorge León, a Rystad Energy Analyst.
American purchases of Venezolan oil are ready to relax after the Trump government had declared that it would revoke a license that made it possible Chevron to produce oil there.
The Trump administration gave Chevron, the second largest US oil society on Monday, another two months to produce oil in Venezuela and sell them to the USA. The administration had previously ordered Chevron to withdraw their business by April 3.
The governments of the United States and the Venezuelan governments have affected Mr. Trump's plans to deport migrants from the United States. Venezuela announced on Saturday that it had made an agreement with the Trump administration to resume migrants in the United States.
“Venezuela was very hostile to the United States and the freedoms we take,” wrote the president.
Mr. Trump plans to impose other new tariffs worldwide on April 2 when he will imagine what he calls “mutual tariffs”. He said the United States will increase the tariffs that they calculate in other countries to meet their levies and at the same time take other behaviors into account that influence trade such as taxes and currency manipulations. The president referred to this “day of liberation”, a term of office that he repeated on Monday.
Mr. Trump called the new taxes that he threatened by buyers of Venezuelan oil “secondary physician”, a label that repeated “secondary sanctions” in which other countries or parties that deal with nations under sanctions were imposed.
Some commercial and sanction experts said existing secondary sanctions associated with countries such as Russia and Iran were not well enforced, and asked whether the United States would have the ability to achieve new tariff-based finish.
“In view of the limited enforcement of existing secondary sanctions, in which we have a precedent, I am not sure how realistic use of this strategy is,” said Daniel Tannebaum, partner of the consulting company Oliver Wyman and Senior Fellow at the Atlantic Council, a Think Tank in Washington.
However, other experts said that the strategy could help the United States avoid the type of financial sanctions against foreign banks that could endanger financial stability. The United States could help use tariffs to take difficult measures without taking these risks, they said.
In typical secondary sanctions, individuals or companies cannot buy oil or other products from sanctions from a country. Otherwise, companies could be exposed to US sanctions themselves that are confronted with fines or are cut off by the US financial system.
But Mr. Trump and his advisors said that they believe that such sanctions can threaten the priority of the dollar if they are over -explained by encouraging other countries to find alternative currencies. Instead, you talked about using tariffs.
In his hearing for confirmation in January, Finance Minister Scott Bessent said that tariffs could offer an alternative to traditional financial sanctions in addition to increasing the income and the retirement of the supply chains.
Mr. Trump “believes that we have probably overcome our skis a little about sanctions and that sanctions may be driving the countries out of the use of the US dollar,” said Bessent. Tariffs could be used instead, he said.