China’s Purchases Stall After Trump’s Tariff Threat on Buyers of Venezuelan Oil | OilPrice.com
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Breaking News:
China, the biggest buyer of oil from Venezuela, saw trade with Venezuela stall on Tuesday after U.S. President Donald Trump threatened on Monday 25% tariffs on the goods of any country buying Venezuelan oil.
Traders and refiners in China were caught off guard by Monday’s executive order and are waiting to see whether Beijing will have some direction on the matter, trading sources told Reuters.
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China is the biggest buyer of Venezuelan oil and is estimated to be importing via various – often opaque – channels about 500,000 barrels per day (bpd) of crude oil and fuel from Venezuela. A large share of the cargo is being rebranded as coming from Malaysia after trans-shipments in Asian waters.
Some Chinese buyers are now refraining from touching Venezuelan oil amid the latest uncertainty from the U.S. sanctions and trade policy.
“The worst thing in the oil market is uncertainty. We won’t dare touch the oil for now,” a senior executive at a regular Chinese trader of Venezuelan oil told Reuters.
On Monday, President Trump said in an executive order that “On or after April 2, 2025, a tariff of 25 percent may be imposed on all goods imported into the United States from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties.”
The duties imposed by the order will be on top of all other tariffs currently in place.
The U.S. has a 20% tariff on Chinese imports.
“Any country that allows its companies to produce, extract, or export from Venezuela will be subject to new tariffs, and any companies will be subject to sanctions,” U.S. Secretary of State Marco Rubio said in comments on the executive order.
China appeared to dismiss the latest U.S. trade move.
Asked by a Reuters reporter at the regular press conference on Tuesday whether China would stop its oil purchases from Venezuela to comply with the order, Chinese Foreign Ministry Spokesperson Guo Jiakun said “The U.S. has long abused illegal unilateral sanctions and “long-arm jurisdiction,” and grossly interfered in the internal affairs of other countries. China firmly opposes such actions.”
“Trade wars and tariff wars have no winners. Imposing additional tariffs will only inflict greater losses on American businesses and consumer,” Guo added.
By Charles Kennedy for Oilprice.com
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