How Trump Plans to Use ‘Secondary Tariffs’ to Punish Importers of Venezuelan Oil

Having embraced tariffs as a central tool of both economic policy and diplomacy, US President Donald Trump has been creative with his proposals on how to deploy the import taxes. One example is his plan to impose so-called reciprocal tariffs — new duties to be customized for each trading partner with the aim of offsetting any of its practices deemed to put American exporters at a disadvantage. Another example: he’s threatened to impose what he’s calling secondary tariffs on imports from countries that buy oil from Venezuela, whose economy relies heavily on crude sales.

In a March 24 executive order, Trump said that US imports from countries that buy oil from Venezuela, whether directly or indirectly, could face a tariff of 25% in addition to any duties already in place. The order gives Secretary of State Marco Rubio discretion on whether to impose the tariff or not.