US President Donald Trump said on Monday, March 24 that he would impose 25 percent tariffs on oil and gas buying countries from VenezuelaThis is a step that can affect Asian markets including China and India, and can cause fresh uncertainty in the global economy.

What has Trump said?

President Trump wrote on his Truth social network, “Venezuela has been very hostile against the US and the freedom that we support… Therefore, any country that buys oil and/or gas from Venezuela will be forced to pay 25% tariffs to America on any trade with our country.”

In the order on which Trump signed on Monday, direct and indirect buyers of Venezuela oil have been targeted and 25 percent of this tariff on them can be effective from April 2. According to Trump’s order, the day when a country has imported oil from Venezuela, the tariff of 25 percent will end one year. If America wants, the tariff can be abolished even before that.

Trump announced the time when the Deportation (exile) between the US and Venezuela was stopped last month. Trump had claimed that Venezuela had not met the agreement to receive the exiled migrants quickly. Venezuela later said that she will no longer accept the flight coming from America with migrants.

What will be the effect on India?

This action of the US President may affect China and India. The reason is that Venezuela exports oil with China-India and to the US and Spain.

In December 2023 and January 2024, India was the top buyer of Crude Oil (Crude Oil) of Venezuela. In December 2023, New Delhi imported around 191,600 barrels per day, which increased to more than 254,000 in the next month. In January 2024, India was importing about half of the total oil exports of Venezuela (about 557,000 BPD for a month).

In 2024, India imported 22 million barrels of oil from Venezuela, which was 1.5 percent of the country’s total crude oil purchases. According to an AFP report, in February, Venezuela exported around 500,000 barrels of oil to China and the figure was 240,000 barrels for the US.

Oil prices killed

After the announcement of Trump, oil prices increased by 1 percent on Monday. Brent crude future rose 84 cents or 1.2 percent to $ 73 per barrel, while US West Texas Intermediate crude grew 83 cents or 1.2 percent to $ 69.11.

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