Tariffs Threatened: Who Imports Venezuelan Oil?
On top of being the potential target of reciprocal tariffs by the United States from April 2 on, India has now been threatened with another type of U.S. trade action. President Donald Trump has announced that he would place import dues to the tune of 25 percent on those countries buying Venezuelan oil. The action is also expected from early next month, giving Trump yet another way to apply pressure to international partners via trade policy.
Throughout 2024 (and into 2025) the United States has itself been buying Venezuelan oil under a license it gave to Chevron to operate in the country despite sanctions. European nations importing Venezuelan oil have also been exempt from them through special permits. U.S. operations in Venezuela were, however, ordered to wind down within 30 days on March 4 - just in time for Trump's next big tariff deadline (even though this has now been extended).
Other big buyers of Venezuelan oil are Asian nations, especially China. While Chinese buying decreased in 2024 compared to 2023, the smaller amount bought by India has shot up. The country has been known to snap up cheap oil shipments no matter who the sender is to the disdain of the international community. India continues to buy discounted Russian oil that others won't accept and that Western nations have tried to ban from international markets entirely.
In 2024, India bought an average of 63,000 barrels of Venezuelan oil per day, up 500 percent from 2023. According to Indian media, the country's refiners have been saving big on the oil, including major corporation Reliance. Buyer would now concentrate on cheap Russian shipments even more, The Economic Times reports, which have stabilized following disruptions after newer sanctions against tankers came into force. The share of CIS shipments in all of India's oil imports rose significantly since April 2022, hitting 43 percent in September at almost 2 million barrels per day. Meanwhile, Venezuelan shipments of around 60,000 barrels a day most recently are much smaller in comparison.