China halts purchase of Venezuelan oil after Trump's tariff measures

The trade of Venezuelan crude whose main buyer is China, is at a standstill on Tuesday following the issuance of the new executive order, by President Donald Trump, establishing tariffs of 25% on countries that buy Venezuelan oil and gas.

In his Truth Social account, the Republican leader, in his fight against the dictatorship of Nicolás Maduro of Venezuela, pointed out that:

"(...) 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. 

The Republican's decision comes just days after the U.S. slapped sanctions on Chinese imports from Iran and has generated uncertainty in the oil market, which has put several key players' operations in China on hold.

China in trouble

The measure directly affected China as the Asian giant acquires 503,000 barrels a day of Venezuelan crude and fuel. The figure is equivalent to 55% of the total exports of Nicolás Maduro's regime in Venezuela.

With the imposition of the measure by the Republican Administration, it is now up to China to evaluate what its next steps will be.

In that regard, operators and refiners in Chinahave expressed that they are awaiting further clarity on how the decree will be implemented and whether the Beijing governmentwill issue guidelines prohibiting continued purchases.

A senior executive at a Chinese company that regularly trades Venezuelan oil, according to Reuters, indicated that his firm has decided to refrain from purchasing shipments scheduled for April.

"The worst thing in the oil market is uncertainty. We won't dare touch the oil for now" he said in statements to Reuters.

This stance reflects the fear of possible economic retaliation by the United States, especially in a context in which China is already facing tariff tensions with Washington.

Another executive, coming from an independent refinery that occasionally imports Venezuelan crude oil, described the situation as "a total mess".

According to this representative, Trump's order not only generates significant confusion among Chinese buyers, but also affects other market players, such as buyers of Venezuelan fuel oil based in Singapore.

"China is already in a tariff war with the U.S. So be it", he added, showing resignation at the new chapter in this trade dispute.

The impact of the measures

The impact of this measure transcends the Sino-Venezuelan borders, as it puts at risk the trade relations of other countries that also import oil from Venezuela, such as Spain, India and several Caribbean nations.

For now, uncertainty reigns, and the actors involved are still waiting for more concrete definitions that will allow them to chart a clear course in this new scenario.