Why Trump’s Venezuela tariff move presents a dilemma for China

Beijing may have to choose between giving up on its closest ally in the Americas or being hit with additional US tariffs, analysts said

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President Xi Jinping holds a welcome ceremony for his Venezuelan counterpart Nicolas Maduro in Beijing. Venezuela is a key Chinese ally in the Americas. Photo: Xinhua

Published: 8:00pm, 26 Mar 2025Updated: 8:33pm, 26 Mar 2025

US President Donald Trump’s latest executive order enabling the United States to impose tariffs on any country that imports oil from Venezuela poses a dilemma for China, analysts said.

China now faces a tough decision: either renounce Venezuelan oil – dealing a heavy blow to its closest ally in the Americas – or face additional duties on all Chinese exports to the US.

But some believe Beijing may view the US move as a gambit aimed at gaining an edge in negotiations over a wider deal.

China is uniquely exposed to Trump’s executive order, signed on Monday, which gives Washington the option to impose tariffs of up to 25 per cent on any country that imports Venezuelan oil from as early as April 2.

The world’s second-largest economy bought 68 per cent of the oil exported by Venezuela in 2023, according to US Energy Information Administration data, and Trump has already raised tariffs on Chinese imports by 20 per cent since returning to office in January.

Although China could replace the deliveries from Venezuela – which are estimated to make up less than 1 per cent of its total oil imports in volume terms – giving up on the impoverished, left-leaning South American country would soil a strong diplomatic relationship, analysts said.