Imposing U.S. Tariffs on Countries Importing Venezuelan Oil: A New Executive Order

Trade Update • March 25, 2025

n a significant move aimed at tightening economic pressure on the Venezuelan government, President Donald J. Trump has issued an executive order imposing a 25% tariff on imports from any country that continues to purchase Venezuelan oil, either directly or indirectly.

This order underscores the administration’s stance on the ongoing national security threat posed by the regime of Nicolás Maduro and its alleged links to criminal organizations such as the Tren de Aragua gang.

Context and Justification

The executive order builds on existing sanctions against Venezuela, originally enacted under Executive Order 13692 in 2015 and further strengthened through additional sanctions in 2017, 2018, and 2019. The administration argues that Maduro’s regime continues to undermine democratic institutions, engage in corruption, and contribute to regional instability by fueling mass migration.

Furthermore, the presence of the Tren de Aragua gang, which the U.S. government has designated as a Foreign Terrorist Organization, has exacerbated concerns about Venezuela’s role in transnational crime. This criminal organization is accused of engaging in violent activities, including assassinations and human trafficking, and is believed to have infiltrated U.S. borders in recent years. The Trump administration has framed this move as a response to both economic and security threats, citing the need to curtail Venezuela’s ability to fund illicit activities.

Key Provisions of the Executive Order

1. Tariff Imposition on Countries Importing Venezuelan Oil

• A 25% tariff will be applied to all imports from any country that continues to purchase Venezuelan oil.
• This includes both direct and indirect purchases, meaning countries that acquire Venezuelan oil through intermediaries will also be subject to penalties.
• Duties imposed by this order will be supplemental to duties on imports already imposed pursuant to IEEPA, section 232 of the Trade Expansion of 1962, section 301 of the Trade Act of 1974, or any other authority.
• The tariff will remain in place for at least one year after a country ceases Venezuelan oil imports unless the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Homeland Security, and the United States Trade Representative, so determines at his discretion.

2. Administration and Enforcement
The Secretary of Commerce, in coordination with the Secretary of State and the Attorney General, is authorized to:

• Determine whether a country has imported Venezuelan oil, directly or indirectly.
• Issue regulations, guidance, and determinations as necessary to implement this order.
• Coordinate with the heads of other executive departments and agencies to ensure compliance.
• Take any additional actions consistent with applicable law to carry out the purposes of this order.
• If China is subject to the tariff, the tariff will also apply to Hong Kong and Macau to prevent transshipment and evasion.

3. Definitions

• The term “Venezuelan oil” refers to crude oil or petroleum products extracted, refined, or exported from Venezuela, regardless of the nationality of the entity involved in the production or sale of such products.
• The term “indirectly” includes purchases of Venezuelan oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Venezuela, as determined by the Secretary of Commerce.

Executive Order – Imposing Tariffs on Countries Importing Venezuelan Oil

Global and Economic Implications

The decision to impose tariffs on countries importing Venezuelan oil could have far-reaching economic and diplomatic consequences. Key trading partners, particularly in Asia and Europe, could face difficult choices between maintaining energy relationships with Venezuela or risk facing penalties on exports to the U.S.

China and India, two of Venezuela’s largest oil purchasers, are likely to be among the countries most affected. The executive order explicitly states that if China is subject to the tariff, it will also apply to Hong Kong and Macau to prevent transshipment loopholes.

Additionally, the order raises concerns about global oil markets. With Venezuela already under heavy sanctions, further economic isolation may impact supply chains, potentially influencing global oil prices and energy security.

Domestic and Political Reactions

Critics of the order argue that such tariffs could inadvertently harm U.S. consumers by increasing the cost of imported goods. Moreover, some policy analysts suggest that the move could strain relations with key allies who rely on Venezuelan oil.

Supporters, however, argue that the measure is a necessary step to hold the Maduro regime accountable and curb the influence of criminal organizations. They see the tariffs as a means to force countries to reassess their economic ties with Venezuela, thereby isolating Maduro’s government further.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Please contact your Client Care Manager or our Global Trade Services Team gts@ghy.com, or call +1 (800) 667-0771.