US President Donald Trump has announced a sweeping 25 per cent tariff on any country purchasing oil or gas from Venezuela, escalating his administration's economic pressure on the South American country and its international trading partners.

In a post on his social media platform Truth Social on March 24, Trump declared that countries buying Venezuelan hydrocarbons would face substantial penalties on their trade with the United States. The levies are set to take effect on April 2, which the president has dubbed "Liberation Day," along with long-announced "reciprocal tariffs" on a slew of countries worldwide.

The move appears primarily targeted at China, which was the largest importer of Venezuelan crude in 2024, purchasing approximately 270,000 barrels per day out of the 660,000 bpd totally produced, according to Kpler data.

“This announcement by the Trump administration appears to be one more action targeting China,” Matt Smith, an oil analyst at Kpler, told CNBC.

Other significant purchasers include Spain, Russia, Singapore and Vietnam, with the United States itself having imported 8.6mn barrels of Venezuelan oil in January.

Energy market analysts suggest the tariffs could significantly disrupt global oil trading patterns. Brent crude futures initially rose in response to the announcement, reflecting market uncertainty about potential supply chain disruptions. Analysts predicted oil prices could rise further if Trump follows through with the proclamation.

The tariff threat comes amid heightened tensions between the United States and Venezuela. Trump has accused the Venezuelan government of deliberately sending criminals into the United States, specifically citing concerns about the Tren de Aragua gang, which his administration has designated as a foreign terrorist organisation.

In a dramatic escalation, the president invoked the 1798 Alien Enemies Act on March 15, claiming the gang was conducting "irregular warfare" against the United States at the direction of Venezuelan President Nicolas Maduro. The administration has taken unprecedented steps, including deporting nearly 200 Venezuelan citizens and transferring over 200 alleged gang members to a maximum security prison in El Salvador.

Diplomatic relations have been further strained by ongoing negotiations about migrant deportations. After a brief suspension, Venezuela has recently agreed to resume accepting deportation flights, with nearly 200 Venezuelan citizens recently returned from the United States.

In late February, the Trump administration applied pressure on the energy front, requiring Chevron to wind down its operations in Venezuela by early April, citing Maduro’s failure to make meaningful progress on electoral reforms and migrant repatriation commitments. This followed the revocation of a previous licence granted by the Biden administration that had allowed the American oil giant to produce oil in the country through joint ventures with state-owned refiner PDVSA.

Intriguingly, however, a few hours after announcing the tariffs, the White House confirmed an extension of Chevron's licence until May 27, enacting a plan first floated last week following a meeting between the company’s CEO and senior US officials.

"Venezuela has been very hostile to the United States and the freedoms which we espouse," Trump wrote in his social media post. "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."

Yet trade and sanctions experts have raised questions about the practical implementation of these "secondary tariffs".

“Given the limited enforcement of existing secondary sanctions, where we have a precedent, I’m not sure how realistic effective deployment of this strategy is,” said Daniel Tannebaum, a partner at Oliver Wyman, as quoted by The New York Times.

The tariffs represent another instance of Trump's aggressive trade strategy, which has already seen duties imposed on major trading partnersm, including China, Canada and Mexico. The administration argues these measures are necessary to address perceived trade imbalances and national security concerns.

As the global energy market watches closely, the potential implications of these tariffs remain to be seen, with many analysts questioning the practical enforcement of such unprecedented secondary tariff mechanisms. The unorthodox move signals a continued willingness by the Trump administration to use economic tools as a means of diplomatic pressure, potentially reshaping international trade dynamics in the process.