News Brief
Trump’s Tariff Threat On Venezuelan Oil Poses A Challenge To India’s Crude Imports
India, particularly RIL and Nayara Energy, was a regular buyer of Venezuelan crude before the imposition of US sanctions in 2019.
In a fresh geopolitical challenge to India’s oil import strategy, US President Donald Trump has threatened to impose 25 per cent “secondary tariffs” on countries importing Venezuelan oil, including India and China, starting 2 April, Indian Express reported.
The move could severely impact India’s energy security and crude procurement strategy.
“Venezuela has been very hostile to the US and the freedoms we espouse. Therefore, any country that purchases oil and/or gas from Venezuela will be required to pay a tariff of 25 per cent to the US on any trade they conduct with our country,” Trump announced in a social media post.
According to the Financial Times, the tariff will apply on top of any existing levies and will remain in effect for one year after the last purchase unless lifted earlier by the US commerce secretary.
India resumed crude imports from Venezuela in December 2023, three years after US sanctions were eased.
With India’s crude import dependency rising to 88.2 per cent, the US-imposed restrictions could drive up global oil prices, affecting net importers like India.
Petroleum Minister Hardeep Singh Puri has repeatedly stated that India will purchase oil from suppliers offering the best economic terms, given its status as the world’s third-largest oil consumer.
The tariff threat coincides with a high-level US delegation visit to India, led by Assistant US Trade Representative Brendan Lynch, where trade and investment talks are expected.
India’s rising oil demand is projected to reach 252.93 million tonnes in FY26, emphasising the significance of securing affordable crude supplies amidst these emerging geopolitical tensions.
