India’s tariff woes are likely to mount further after US President Donald Trump on March 24 announced a new set of tariffs on countries purchasing oil and gas from Venezuela.

Trump told reporters that the US will impose an additional 25 percent tariff from April 2 on nations buying oil from the Latin American nation, affecting direct and indirect purchasers of oil.

“Venezuela has been very hostile to the United States and the Freedoms which we espouse. Therefore, any country that purchases oil and/or gas from Venezuela will be forced to pay a tariff of 25% to the United States on any trade they do with our country,” Trump posted on Truth Social.

Trump told reporters that the 25 percent tariff would be on top of existing rates.

In his Monday announcement on Truth Social involving Venezuela, the president cited “numerous reasons” for what he called a “secondary tariff.”

He accused Venezuela of “purposefully and deceitfully” sending “undercover, tens of thousands of high level, and other, criminals” to the United States.

The latest move, which could add fresh fire to an already uncertain global trade, will affect other countries as well, including New Delhi’s neighbor China.

Since returning to the White House in January, Trump has unleashed tariffs on US allies and foes alike, attempting to strong-arm both economic and diplomatic policy. The US secretary of state, in consultation with other government agencies, is authorized to determine if the new levy will be imposed.

Impact on India

The new tariffs could hit China and India, with experts pointing out that Venezuela exports oil to both those countries, and to the United States and Spain.

In February, Venezuela exported about 500,000 barrels of oil per day to China and 240,000 barrels to the United States, experts told AFP.

However, the likely impact on India could be minimum as the imports are not that high.

Last year, India imported 22 million barrels of oil from Venezuela, accounting for 1.5 percent of the country’s total crude oil purchases. In December 2023 and January 2024, New Delhi was the top buyer of crude oil from Venezuela with imports of 191,600 barrels per day and 254,000 barrels per day respectively. January 2024’s imports saw India buy almost half of Venezuela’s exports.

Trump has dubbed April 2 “Liberation Day” for the world’s biggest economy, already promising reciprocal tariffs tailored to each trading partner in an effort to remedy practices that Washington deems unfair. He earlier signaled sector-specific duties coming around the same day — but the White House said Monday it might take a narrower approach.

Trump’s latest move adds to tariffs he has vowed would start on or around April 2. Besides reciprocal tariffs, he has promised sweeping sector-specific duties hitting imported automobiles, pharmaceuticals and semiconductors.