Trump’s Secondary Tariff: What It Means And How It Will Impact India

President Donald Trump announced on Monday that the United States will impose a 25% secondary tariff on any country purchasing oil from Venezuela. The decision, which Trump attributes to security concerns and diplomatic tensions, is set to take effect on April 2, 2025.

Trump Cites Security Threats Behind Tariff

In a post on his social media platform, Truth Social, Trump justified the move by alleging that Venezuela has been covertly sending criminals, including members of the notorious Tren de Aragua gang, into the U.S.

“President Donald J. Trump announced today that the United States of America will be putting what is known as a Secondary Tariff on the Country of Venezuela, for numerous reasons, including the fact that 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,” Trump wrote.

He further stated that among those entering the U.S. was the Tren de Aragua gang, which has been designated as a “Foreign Terrorist Organization.” The U.S. government is currently working on deporting these individuals, Trump claimed, calling the process a “big task.”

Secondary Tariff to Impact Major Oil Buyers, Including India and China

Trump’s new tariff will primarily affect countries heavily reliant on Venezuelan oil. The two largest importers, China and India, will face significant economic repercussions.

India imported approximately 22 million barrels of Venezuelan crude in 2024, accounting for 1.5% of its total oil imports. China, which has been Venezuela’s largest oil buyer, received about 68% of Venezuela’s exported oil in 2023, according to a 2024 analysis from the U.S. Energy Information Administration.

With this secondary tariff, any country that continues to import Venezuelan oil will face a 25% levy on all trade conducted with the U.S., adding to existing tariffs already in place.

April 2: The Day Trump’s Tariffs Take Effect

The secondary tariff on Venezuelan oil is part of a broader set of trade restrictions Trump has introduced. The tariff is scheduled to come into effect on April 2, which Trump referred to as “Liberation Day in America.”

“All documentation will be signed and registered, and the Tariff will take place on April 2nd, 2025, LIBERATION DAY IN AMERICA,” Trump wrote. “Please let this notification serve to represent that the Department of Homeland Security, Border Patrol, and all other Law Enforcement Agencies within our Country have been so notified.”

April 2 will also mark the resumption of Trump’s reciprocal tariff policy, which imposes matching duties on countries that have tariffs against the U.S. Nations affected by these reciprocal tariffs include the European Union, Mexico, Japan, South Korea, Canada, India, and China.

Understanding Trump’s ‘Secondary Tariff’

Though not an established economic term, Trump’s use of “secondary tariff” refers to an additional levy imposed on countries that trade with another nation under U.S. sanctions or scrutiny. In this case, the target is Venezuela, and any country that buys oil or gas from the South American nation will face the penalty on their broader trade with the U.S.

This measure is designed to not only pressure Venezuela but also deter its trade partners, effectively isolating the country economically.

Trump has been vocal about deporting Venezuelans he claims are affiliated with the Tren de Aragua gang. In recent weeks, the U.S. has deported hundreds of Venezuelan migrants under the Alien Enemies Act of 1798, despite a legal challenge from federal judge James E. Boasberg, who had issued an order halting the first round of deportations.

Trump has also accused Venezuela of being “hostile” to U.S. efforts to repatriate migrants. However, just hours before Trump’s announcement, Venezuelan President Nicolás Maduro agreed to resume accepting deportation flights from the U.S. The decision followed a move by the U.S. Treasury Department to revoke Chevron’s license to export Venezuelan oil, which led to Maduro temporarily halting deportation flights earlier in March.

Also Read: Trump Announces 25% Tariff on Countries Buying Venezuelan Oil