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Trump Plans Tariffs on Countries Buying Energy From Venezuela

WSJ ·  Mar 24 18:59

By Collin Eaton and Alex Leary

WASHINGTON -- President Trump said he would impose a 25% tariff on any country that purchases oil or gas from Venezuela, an arrangement that could allow Chevron to continue to do business there.

Trump didn't mention Chevron in a social-media post Monday, but the company had lobbied for a reversal of an administration decision to revoke its license to operate in Venezuela. The tariff idea was discussed during a White House meeting last week with Trump and Chevron Chief Executive Mike Wirth.

The White House didn't immediately respond to a request for additional details. Chevron declined to comment. The Treasury Department on Monday hadn't announced any new policy changes specific to Chevron.

Trump described the move as a "secondary tariff" on Venezuela over the flow of migrants to the U.S., including members of the Tren de Aragua gang. The Trump administration has said it is deporting alleged members of the gang as part of its deportation efforts. Venezuela over the weekend said it would resume repatriation of migrants after suspending such flights because of the withdrawal of the Chevron license.

"Venezuela has been very hostile to the United States and the Freedoms which we espouse," Trump wrote. "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."

The measure would go into effect on April 2, Trump said, the same day he intends to impose reciprocal tariffs on a targeted set of nations.

The Biden administration granted Chevron a license to resume operations in Venezuela in 2022, after the first Trump administration had barred the company from the Latin American country during a so-called maximum pressure campaign to oust strongman Nicolás Maduro. The Trump administration last month signaled it would give Chevron 30 days to leave, ending its operations there in early April.

The Trump administration hasn't said whether it plans to extend Chevron's license to pump oil in Venezuela, an idea discussed at last week's White House meeting. Some senior officials in Trump's administration still oppose allowing Chevron to pump oil in the country.

Write to Collin Eaton at collin.eaton@wsj.com and Alex Leary at alex.leary@wsj.com

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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