What's going on with Venezuelan "secondary tariffs"?

Firstly, what are Venezuelan secondary tariffs? On March 24, 2025, President Trump signed an executive order stating that on or after April 2, 2025 any country which imports oil from Venezuela directly or through a third nation will be subject to a further 25% tariff on all goods they import to the US. This tariff would be above and beyond any tariff which already exists. This means if nations wish to import anything to the US and they also are receiving Venezuelan oil exports, they have an additional 25% over standard ad valorem, 301, 232, and IEEPA tariffs.

There is a bit of a caveat to these secondary tariffs. The language in the executive order specifically says that the this action "may" occur. It also states that the Secretary of State has discretion to levy tariffs on nations which import Venezuelan oil. The action is put forth as a sanction against the Venezuelan government for allowing or promoting the movement of Tren de Aragua gang members to the US.

At this time there is no official word as to which nations, if any, will have to pay the extra tariffs. China is likely, as they are the world's largest importer of Venezuelan oil. However, there has been a 12% drop in the amount of oil China imports in the month of March. Whether this will be seen as a good faith action or not remains to be seen. Other countries could include India and Spain, though it is speculated that India and European nations will get a reprieve from the tariff.

We'll update the blog as we know more information after the April 2 (or later) announcement.