U.S. Tariffs on Countries Importing Venezuelan Oil
President Donald J. Trump has declared a continued national emergency regarding Venezuela due to ongoing threats to U.S. national security and foreign policy. To review the full Executive Order issued on March 24, 2025, please click on the link below:
Imposing Tariffs on Countries Importing Venezuelan Oil
Background
- The declaration is based on the International Emergency Economic Powers Act and the National Emergencies Act.
- The regime of Nicolรกs Maduro poses an extraordinary threat, as outlined in Executive Order 13692.
- Activities of the Tren de Aragua gang, labeled as a Foreign Terrorist Organization, exacerbate this threat.
- Venezuela’s destabilizing actions, including support for illicit activities, necessitate further economic measures to safeguard U.S. interests.
Section 1. Findings
The Tren de Aragua gang, a transnational criminal organization from Venezuela, has been designated as a Foreign Terrorist Organization by the United States due to its involvement in terrorist activities, including kidnapping and violent attacks.
Their actions have destabilized communities across the Western Hemisphere, with members infiltrating the United States, facilitated by the previous administration’s open-border policies.
The Maduro regime has contributed to the crisis by failing to control its borders, allowing the gang’s operations to flourish and exacerbating illegal immigration.
Existing sanctions against Venezuela, including several Executive Orders, remain in effect due to the regime’s actions that threaten U.S. national security, such as:
- Undermining democratic institutions and suppressing free elections.
- Engaging in economic mismanagement and public corruption.
- Contributing to a humanitarian and public health crisis in Venezuela.
- Causing forced migration of millions, placing burdens on neighboring countries.
Section 2. Imposition of Tariffs
- Tariff Imposition: Starting April 2, 2025, a 25% tariff may be imposed on all goods imported into the U.S. from countries that import Venezuelan oil, whether directly or indirectly.
- Supplemental Duties: This tariff will be in addition to existing duties imposed under various trade laws, including IEEPA and section 232 of the Trade Expansion Act.
- Authority to Determine Tariff: The Secretary of State, in consultation with other key officials (Treasury, Commerce, Homeland Security, and the Trade Representative), will decide on the imposition of this tariff.
- Tariff Expiration: Once imposed, the 25% tariff will expire one year after the last date a country imported Venezuelan oil, or earlier if determined by the Secretary of Commerce in consultation with other officials.
Section 3. Administration and Enforcement
Authorization of Tariffs: The Secretary of State, along with other key officials, is authorized to impose tariffs related to Venezuelan oil.
Roles and Responsibilities:
The Secretary of Commerce can:
- Determine if a country has imported Venezuelan oil.
- Issue necessary regulations and guidance.
- Ensure compliance with other executive departments.
- Take additional lawful actions to implement this order.
Termination of Prior Directives: Any inconsistent previous directives are terminated or modified to ensure the new order is fully effective.
Tariffs on Specific Regions: If tariffs are imposed on China, they will also apply to Hong Kong and Macau to prevent evasion.
This summary encapsulates the essential elements of the administration and enforcement of tariffs as outlined in the order.
Section 4. Reporting and Review
The Secretary of State and the Secretary of Commerce shall submit periodic reports to the President, within 180 days of the date of this order and no less than every 180 days thereafter, assessing the effectiveness of the tariffs described in this order and the ongoing conduct of the Maduro regime.
Section 5. Definitions
For the purposes of this order:
- (a) The term โVenezuelan oilโ means crude oil or petroleum products extracted, refined, or exported from Venezuela, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.
- (b) The term โindirectlyโ includes purchases of Venezuelan oil through intermediaries or third countries where the origin of the oil can reasonably be traced to Venezuela, as determined by the Secretary of Commerce.
Section 6. Effective Date
This order is effective at 12:01 a.m. eastern daylight time on April 2, 2025.
Section 7. General Provisions
The order does not affect the authority granted to executive departments or agencies.
It preserves the functions of the Director of the Office of Management and Budget regarding budgetary and legislative proposals.
Implementation:
The order must be implemented in accordance with applicable laws and depends on the availability of appropriations.
Legal Rights:
This order does not create any enforceable rights or benefits for any party against the United States or its entities.
Should you or your organization have any questions, please do not hesitate to contact your Dominion Customs Consultants representative, or feel free to reach us at:
