Opinion
Mint Quick Edit | Trump’s Venezuelan-oil tariff threat: Crude policy
Summary
- The US seems ready to deploy tariffs as a geopolitical weapon to get other countries to shun Venezuela. Outrageous as this ploy is, India may find it’s better to give up buying Venezuelan oil than face a 25% barrier on exports to the US.
US President Donald Trump has sent yet another signal that he has no qualms deploying tariffs as a geopolitical weapon. As reported, he has now said the US would levy a 25% tariff on all imports from any country that purchases oil or gas from Venezuela, a country that has been under US sanctions but whose finances he evidently wants to squeeze harder.
Also Read: Nitin Pai: Trump’s tariffs serve political ends even if they lack economic logic
India would be on the US radar for this punitive measure, given India’s shipments of Venezuelan crude. Trump’s justification is flimsy. Caracas, he alleges, has been wilfully and sneakily sending “criminals" and violent folks to America.
Also Read: Truth or dare: Close the deficit in clarity over the impact of Trump’s tariffs
The US shunning it is one thing; trying to make others do likewise is another. The most glaring part of such a US policy move would be how it impinges on the right of sovereign nations to trade with who they want. It should be entirely India’s business to work out what import mix suits it best.
Also Read: US-India trade talks: Steer clear of deal-breakers
That said, our crude shipments from Venezuela peaked almost a decade ago and have been on the decline since. Since they’re down to a replaceable fraction, barely a sliver of our total shipments, Indian importers may calculate it’s best to opt for other suppliers. This isn’t ideal, but then neither is the world.
