China, the biggest buyer of oil from Venezuela, saw trade with Venezuela stall on Tuesday after U.S. President Donald Trump threatened on Monday 25% tariffs on the goods of any country buying Venezuelan oil.
Traders and refiners in China were caught off guard by Monday’s executive order and are waiting to see whether Beijing will have some direction on the matter, trading sources told Reuters.
China is the biggest buyer of Venezuelan oil and is estimated to be importing via various – often opaque – channels about 500,000 barrels per day (bpd) of crude oil and fuel from Venezuela. A large share of the cargo is being rebranded as coming from Malaysia after trans-shipments in Asian waters.
Some Chinese buyers are now refraining from touching Venezuelan oil amid the latest uncertainty from the U.S. sanctions and trade policy.
“The worst thing in the oil market is uncertainty. We won’t dare touch the oil for now,” a senior executive at a regular Chinese trader of Venezuelan oil told Reuters.
On Monday, President Trump said in an executive order that “On or after April 2, 2025, a tariff of 25 percent may be imposed on all goods imported into the United States from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties.”
The duties imposed by the order will be on top of all other tariffs currently in place.
