U.S. President Donald Trump’s statement comes just ahead of the April 2 date, from when the U.S. President intends to levy reciprocal tariffs on on numerous trading partners, including India. File.
| Photo Credit: AP
Latest in the series of Donald Trump’s tariff-related announcements, the U.S. President on Monday (March 24, 2025) said he would be imposing a 25% tariff on all imports from those countries that buy oil or gas from Venezuela. He also announced plans to impose fresh tariffs on the South American country itself.
Mr. Trump’s statement comes just ahead of the April 2 date, from when the U.S. President intends to levy reciprocal tariffs on on numerous trading partners, including India. Additionally, a U.S. delegation, headed by Brendan Lynch, the U.S. Trade Representative’s point-person for South and Central Asia, is set to hold discussions with its Indian counterpart in New Delhi.
Also read: Why has India promised to buy more U.S. oil? | Explained
India’s current import dependence when it comes to crude oil, which includes supply from Venezuela, means Mr. Trump’s latest plans will add to the country’s tariff burden.
What has Trump proposed?
Stating that Venezuela has been “very hostile” to the United States, Mr. Trump followed it up by saying that those countries purchasing oil and gas from Venezuela will have pay 25% tariff on all their trade to the U.S. starting April 2. Mr. Trump added that Venezuela will face a “Secondary” tariff because it is the home to the gang Tren de Aragua. The Trump administration is deporting immigrants that it claims are members of that gang who illegally crossed into the United States.
However, it must be noted that the U.S. itself, currently, continues to be a purchaser of Venezuelan oil. On Monday, the Treasury Department issued an extension for U.S.-based Chevron Corp.’s lease to pump and export Venezuelan oil until May 27. The extension, known as a general license, exempts the country from economic sanctions and allows it to continue to pump oil.
Prior to sanctioning Venezuela in 2019, according to a report by the U.S. Energy Information Administration, the country was the largest importer of Venezuela’s crude oil. “Most of the remaining crude oil,” it said, “was destined for India, China, and Europe.”
How is India involved in Venezuelan oil trade?
After previously halting oil import from Venezuela in 2019, following U.S. sanctioning of the country, India resumed imports in December 2023, after the Biden administration relaxed some sanctions. Union Minister of Petroleum and Natural Gas Hardeep Singh Puri had welcomed “the return of Venezuelan oil to the market.”
His statement assumes significance in light of India’s monetary stakes in Venezuela’s oil trade. In 2008, ONGC Videsh (the overseas arm of ONGC), signed a joint venture agreement with PDVSA (Venezuela’s state oil company) to acquire 40% stake in the San Cristobal field in eastern Venezuela’s Orinoco Heavy Oil belt. ONGC Videsh had also acquired a stake, in 2010, in the the Carabobo Area oil field. According to the company’s website, ONGC Videsh holds 11% stake currently in the Carabobo Area oil field, alongside Indian Oil Corporation – 3.5% and Oil India – 3.5%.
The U.S. easing of sanctions in 2023 was followed by the private sector, including companies like Reliance, receiving U.S. approval to resume importing oil from PDVSA. Subsequently in 2024, India imported 22 million barrels from Venezuela, and Indian PSUs have invested about $1 billion in the country. So far, Commerce Ministry officials have not commented on Mr. Trump’s latest threat.
(With agency inputs)
Published – March 25, 2025 10:24 am IST