Trade in Venezuelan oil to China came to a halt on Tuesday after an order threatened tariffs on countries importing from Caracas, creating fresh uncertainty just days after sanctions targeted purchases from Iran.
The order states that a 25% tariff may be imposed on goods from any country importing Venezuelan oil, starting on April 2.
Chinese traders and refiners are now waiting for further clarity on how the order will be implemented and whether purchases will be affected. While some expect supply flows to continue, others are holding back due to shifting tariff policies.
Companies that regularly purchase Venezuelan oil have already suspended shipments for April, citing uncertainty in the market. Independent refiners, which occasionally buy Venezuelan oil, have also raised concerns about potential disruptions in supply chains.
China remains the largest buyer of Venezuelan crude, importing around 503,000 barrels per day, accounting for more than half of Venezuela’s oil exports. Much of this oil is rebranded after transshipment.
Independent refiners, known as teapots, are among the main buyers, favoring heavy crude grades due to their lower cost compared to other sanctioned oil.
Authorities have reiterated their opposition to unilateral sanctions, calling them an interference in trade. Previous tariff measures have already led to countermeasures, including increased duties on certain goods and restrictions on exports of critical minerals.
Unless direct orders are issued to halt purchases, refiners struggling with narrow profit margins are expected to continue acquiring Venezuelan crude once they gain more clarity on the situation. Some believe the decision will have minimal impact on actual purchases, as refiners are focused on broader trade policies rather than the threat of tariffs.
In addition to independent refiners, direct shipments of Venezuelan crude have continued as part of longstanding arrangements. These deliveries remain in place despite earlier restrictions.
Meanwhile, recent measures have expanded to target additional refiners and vessels linked to oil shipments, further complicating trade flows in the region.
