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Trump says 25% tariff from April 2 on countries buying

Venezuela

oil

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Oil futures jump nearly 1.5% on planned tariff

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China is biggest consumer of Venezuelan oil exports

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Trump extends Chevron's ( CVX ) wind-down in Venezuela to May 27

By Timothy Gardner and Marianna Parraga

WASHINGTON/HOUSTON March 24 (Reuters) - The U.S.

extended Chevron's ( CVX ) wind-down of oil exports from

Venezuela by two months on Monday, after President Donald Trump

said that any country buying oil or gas from Venezuela will pay

a 25% tariff on any trades made with the United States.

In an expected move, the Trump administration extended until

May 27 the wind-down of a license that the U.S. had granted to

Chevron ( CVX ) since 2022 to operate in sanctioned Venezuela and export

its oil. Chevron ( CVX ) is only permitted to export that oil to the

United States.

Trump had initially given Chevron ( CVX ) 30 days from March 4

to wind down that license after he accused President Nicolas

Maduro of not making progress on electoral reforms and migrant

returns.

Chevron ( CVX ) did not immediately respond to a request for

comment.

Earlier on Monday, Trump announced a "secondary tariff" to

take effect on April 2, in a post on Truth Social. The two moves

taken together alleviate some pressure on Chevron ( CVX ) while putting

more pressure on consumers of Venezuelan oil, though it is

uncertain how Trump's administration will enforce the tariff.

Trump is imposing the tariff because, he said, Venezuela

has sent "tens of thousands" of people to the United States who

have a "very violent nature."

Benchmark crude oil futures jumped nearly

1.5% on the news of the tariff.

Trump earlier this month invoked the 1798 Alien Enemies Act

to justify the deportation of alleged members of Venezuelan gang

Tren de Aragua without final removal orders from immigration

judges.

China, which already has been the subject of U.S. tariffs,

is the largest buyer of Venezuela's oil, the OPEC member's main

export. In February, China received directly and indirectly some

503,000 barrels per day of Venezuelan crude and fuel, which

represented 55% of total exports.

Tariff impositions in China on imports of certain types of

Venezuelan oil in past years led to a decline in the volume of

Venezuelan crude received by Chinese buyers, which ultimately

forced state company PDVSA to widen price discounts to continue

selling to its most important market.

Spain, Italy, Cuba and India are other consumers of

Venezuelan oil. U.S. imports of the oil are set to end May 27.

There was no immediate response from Maduro's government to

a request for comment.

Trump's notice of the tariff occurred days after news

that Shell Plc ( SHEL ) aims to begin producing natural gas at

Venezuela's Dragon gas field and exporting it to neighboring

Trinidad and Tobago in 2026, a year ahead of the original 2027

start date.