US President Donald Trump has doubled down on his tariffs onslaught, recently announcing 25 per cent 'secondary tariffs' on countries purchasing oil and gas from Venezuela. This adds another layer of complexity to the already volatile oil trade, especially for Asian buyers, including India and China.

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What are 'Secondary tariffs'

Though not a technical term, Secondary tariffs hold accountable nations that trade with a country under Sanctions or scrutiny. In this case, Venezuela is under US sanctions and thus, its trade partners could face added levies.

This novel approach adds to a growing list of weapons that Trump has deployed in recent times ahead of his self-proclaimed 'liberation day' on April 2nd. This move is expected to escalate tensions with the Latin American nation over immigration and foreign policy. 

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But beyond Venezuela, the US has opened multiple trade battlefields. The 25 per cent tariffs on imports of steel and aluminium took effect on Wednesday, March 12. This has raised alarms across multiple industries, even with the US, who are now eyeing alternatives amid rising costs. This announcement invoked retaliatory tariffs from Canada, Mexico, China and the European Union. The increasing tariffs have fuelled uncertainty across supply chains as businesses navigate a new landscape under tariffs.

Venezuela oil trade: key stats

Venezuela accounted for 0.9 per cent of global crude output in 2024. In December 2023 and January 2024, India was the largest buyer of Venezuelan crude. That month, India accounted for nearly half of Venezuela's total oil exports, which stood at 557,000 barrels per day. 

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By February 2025, China had become the largest buyer of Venezuelan crude. In 2023, Venezuela exported $3.81 billion worth of goods to the US, primarily crude petroleum, but ongoing sanctions have significantly reduced trade volumes over the past five years. 

According to the US Energy Information Administration, Venezuela's oil production has declined for more than a decade, dropping to 875,000 BPD in 2024 from 3.2 million BPD in 2000. 

Analysts suggest this tariff could push the country to offer deeper discounts on its oil, similar to the previous US sanctions that forced lower prices. However, enforcement remains uncertain, as past secondary sanctions had limited effectiveness in deterring buyers.

India's oil expansion plans under tariff threat

India has been seeking to expand trade with Venezuela. The country's vice president recently visited India during the Energy India Week event. Petroleum Minister Hardeep Singh Puri stated during the event, 'Earlier, Venezuelan oil was not available in the market because of international constraints. Now, all the signals point in the direction of those constraints being eased.'

This quote didn't age well, as new sanctions threaten Venezuela's oil trade with India and the world. Analysts also mention possible fair trade violations by invoking secondary tariffs. They warn of global trade implications and the dangers with Trump constantly doubling down on tariffs.