Trump imposes 25% tariff on countries that buy Venezuelan oil: Where does India stand?

India’s oil imports are likely to be affected, as US President Donald Trump on March 24 said he will be levying a 25% tariff on countries buying oil and gas from Venezuela.

In a post on the social media platform Truth Social, Trump said, “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. All documentation will be signed and registered, and the tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA.”

This tariff is likely going to impact India, China and other countries, as Venezuela exports oil to both those countries and to the US and Spain.

Trump announced this tariff as he said, “Venezuela has purposefully and deceitfully sent to the United States, undercover, tens of thousands of high-level and other criminals, many of whom are murderers and people of a very violent nature. Among the gangs they sent to the United States is Tren de Aragua, which has been given the designation of “Foreign Terrorist Organization”.

China exported 68% of oil from Venezuela in 2023. Spain, India, Russia, Singapore and Vietnam are also among the countries importing oil from Venezuela.

But even the United States — despite its sanctions against Venezuela — still imports oil from that country. In January, the United States imported 8.6 million

India, the world's third largest oil consumer, relies on overseas purchases for more than 80% of its oil needs.

According to reports, India had imported 22 million barrels of oil from Venezuela in 2024—that is 1.5% of India's total crude oil purchases last year. In December 2023 and January 2024, India became the top buyer of Venezuelan crude oil.

India started buying Venezuelan oil again in December 2023 after it last imported it in 2020 when the US imposed secondary sanctions on the nations. The Indian government imported around 191,600 barrels per day starting December 2023, which rose to over 254,000 in the next month.

In January 2024, India was importing nearly half of Venezuela's total oil exports—almost 57,000 bpd for the month.

After the announcement from Trump, oil prices gained 1% on Monday. Brent crude futures rose 84 cents, or 1.2%, to $73 a barrel, while US West Texas Intermediate crude was up 83 cents, or 1.2%, at $69.11.