Executive Orders by President Donald J. Trump

Imposing Tariffs on Countries Importing Venezuelan Oil

Summary

This document outlines a Presidential action imposing tariffs on countries importing Venezuelan oil, effective April 2, 2025. The action is based on the President's assessment that the Maduro regime in Venezuela continues to pose an unusual and extraordinary threat to U.S. national security and foreign policy, exacerbated by the activities of the Tren de Aragua gang.

The order authorizes a 25% tariff on goods imported from countries importing Venezuelan oil, with the Secretary of State having the discretion to impose and the Secretary of Commerce to determine if a country is importing Venezuelan oil. The order also addresses the circumvention of tariffs through Hong Kong and Macau.

The stated purpose is to address the national emergency with respect to Venezuela, as declared in Executive Order 13692 and subsequent orders, and to protect U.S. interests in light of Venezuela's destabilizing actions.

Expected Effects

The immediate effect will be increased costs for countries that continue to import Venezuelan oil, potentially leading to a decrease in those imports. This could strain relationships with those countries and potentially disrupt global oil markets.

Domestically, the tariffs could lead to higher prices for consumers if businesses pass on the increased costs. It could also incentivize domestic oil production and reduce reliance on foreign sources, although this may have environmental implications.

Potential Benefits

  • Weakening the Maduro Regime: Reduced revenue for the Venezuelan government could limit its ability to engage in destabilizing activities.
  • Combating Transnational Crime: Targeting Venezuelan oil revenue may disrupt the financial support for the Tren de Aragua gang.
  • Increased Domestic Oil Production: Tariffs could incentivize domestic oil production, potentially leading to job creation in the energy sector.
  • Reduced Reliance on Foreign Oil: Encouraging domestic production could reduce dependence on foreign sources of oil, enhancing energy security.
  • Signaling U.S. Resolve: The action sends a strong message to other nations about the U.S.'s commitment to addressing the situation in Venezuela.

Potential Disadvantages

  • Increased Consumer Prices: Tariffs could lead to higher prices for gasoline and other goods, impacting American consumers.
  • Strained International Relations: The action could damage relationships with countries that import Venezuelan oil, potentially leading to retaliatory measures.
  • Economic Disruption: Tariffs could disrupt global oil markets, leading to economic instability.
  • Circumvention and Evasion: Countries may find ways to circumvent the tariffs, reducing their effectiveness.
  • Environmental Concerns: Increased domestic oil production could have negative environmental consequences.

Constitutional Alignment

The document cites the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and section 301 of title 3, United States Code, as the legal basis for the action. These acts grant the President broad authority to impose economic sanctions in response to national emergencies.

However, the Constitution grants Congress the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). Presidential actions that significantly impact trade could be challenged as an overreach of executive power.

The President's action relies on a declared national emergency, which has been ongoing since 2015. The continuation of this emergency and the justification for it could be subject to scrutiny.

Impact Assessment: Things You Care About

This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).