President Donald Trump appears to have invented a brand-new economic weapon this Monday, threatening to impose what he has christened “secondary tariffs” on countries that purchase oil from Venezuela. The aim? To strangle the Latin American nation’s oil trade with the rest of the world, all while accusing Venezuela of allegedly sending “tens of thousands of high-ranking criminals and others” to the US.
This latest brainchild, announced via a Truth Social post and confirmed through an executive order, would slap 25% tariffs on trade with any country daring to buy oil and gas from Venezuela, a nation already crushed under heavy US sanctions. It’s a bold new move in Trump’s ever-expanding economic pressure tactics, designed to weaponise American economic power for foreign and domestic political gains.
It’s a new concept in economic warfare, but one question remains: how applicable is it? That’s not exactly clear.
The executive order generously hands over the power to Secretary of State Marco Rubio to decide, from April 2nd onwards, whether to impose these 25% tariffs on countries importing Venezuelan oil, directly or indirectly. And if the target happens to be China, the tariffs won’t stop at its mainland – they’ll happily extend to Hong Kong and Macau.
So far, the U.S., Spain, India, and the all-mighty black market led by China are the primary buyers of Venezuelan oil. But it’s clear Trump has his sights set on Beijing.
Trump’s executive order offers all the flexibility of a dictator’s whims. If any nation dares to defy US policy, the tariffs could be raised to 30% or more. But should they submit to American demands? Trump might graciously reduce the tariffs over time.
The new US president believes, and he’s been clear since the campaign, that financial sanctions lead to de-dollarisation. Unlike mere financial sanctions, Trump claims tariffs have the added benefit of raising revenue – because even if the target refuses to bend, at least you’re making money off their defiance.
It’s not hard to see why Trump prefers this approach. In Trump’s mind, the advantage of tariffs is that even if your target doesn’t give in and you have to impose them, you get some money.
The Venezuelan oil fiasco is just the latest addition to Trump’s peculiar brand of economic warfare. But it’s all part of a broader strategy: wielding US economic influence like a club over the heads of foreign governments until they cave into his demands. And for Trump, it’s all business. Whether it’s a matter of tax revenue, geopolitical power plays, or simply getting other countries to fall in line, the underlying principle remains the same: you do as we say, or you pay the price – literally.
In this bold new world of ‘secondary tariffs,’ Trump’s message to the rest of the globe is clear: your sovereignty means little if your economic survival depends on American goodwill. Welcome to the age of “Tariff Diplomacy.”