Donald Trump, Bullying Much? From Venezuelan Oil To Tariffs On Auto And Pharma, How Trump Is Sowing Confusion In Global Trade And Chaos In Bilateral Relations
Donald Trump’s return to the Oval Office has brought his signature style of diplomacy – strong-arming, posturing, and throwing global trade into a tailspin. Even as Trump reignited his love affair with tariffs, within weeks of resuming his second term (targeting everything) has resulted in a whirlwind of confusion, economic jitters, and mounting tensions between the U.S. and its key trading partners.
The tariffs, announced in bits and pieces, have left markets scrambling and allies fuming. One moment, Trump insists on sweeping reciprocal tariffs; the next, he suggests some countries might get a pass. One day, he vows to penalize nations not buying US oil; the next, his administration hints at possible exemptions.
The pattern is a policy-by-tweet approach, shifting goalposts, and a general disregard for global economic stability.
Yet, the world is playing along, not because it agrees with Donald Trump’s erratic economic warfare, but because it has little choice. The U.S. remains the world’s largest economy, with deep financial influence and a military that backs its economic dominance. No country wants to risk being locked out of American markets, even if it means tolerating the unpredictability of Trump’s trade policies.
Trump Signals Fresh Tariffs on Autos, Pharma, and More. But Leaves Markets Guessing
President Donald Trump announced Monday that new tariffs on automobiles, pharmaceuticals, and other industries are on the horizon, adding to the uncertainty surrounding his sweeping trade policies. Speaking at a Cabinet meeting, Trump confirmed that sector-specific tariffs would soon be revealed, in addition to the forthcoming “reciprocal tariffs” set to take effect on April 2.
The president doubled down on his tariff agenda later in the day, expanding the list to include lumber and semiconductors, though he suggested those duties would come “down the road.” Yet, despite broadening the scope of his trade actions, Trump also left room for flexibility, suggesting that some countries might receive exemptions.
“I may give a lot of countries breaks” on the reciprocal tariffs, Trump said at another White House event. When pressed on whether the sectoral tariffs would begin alongside the reciprocal tariffs on April 2, his response was characteristically ambiguous. “Yeah, it’s going to be everything,” he initially said, before clarifying, “but not all tariffs are included that day.”
Adding to the confusion, Trump indicated that auto tariffs might be announced even before the reciprocal tariffs go into effect. “We’ll be announcing that fairly soon over the next few days, probably, and then April 2 comes—that’ll be reciprocal tariffs,” he said.
The Wall Street Journal reported Sunday that industry-specific tariffs may not be included in the April 2 rollout, contradicting Trump’s earlier statements. A White House official, speaking anonymously, confirmed that no final decision had been made regarding whether sectoral tariffs would be implemented alongside the broader reciprocal trade measures.
Meanwhile, markets reacted positively to speculation that Trump might be softening his stance, with major stock indexes climbing on Monday. However, uncertainty remains, particularly after Trump declared that the U.S. would impose a 25% tariff on any country purchasing oil and gas from Venezuela.
“We’ve been ripped off by every country in the world,” Trump said, stressing his protectionist stance. “We did something with Venezuela, which is long in the making. And we’ll be announcing cars very shortly.”
As the administration’s trade policy continues to evolve in real time, global markets and U.S. trading partners are left waiting for clarity, something that, so far, has been in short supply.
Trump Slaps 25% Tariff on Countries Importing Venezuelan Oil, Escalating Global Trade Tensions
Taking a step further, President Donald Trump announced Monday that the United States will impose a 25% tariff on all countries that purchase oil and gas from Venezuela, intensifying economic pressure on President Nicolás Maduro and targeting China’s energy ties with the South American nation.
“If they buy their oil from Venezuela, they have to pay a 25% tariff to do business with the United States – that’s on top of existing tariffs,” Trump declared at a White House press conference.
The tariffs, set to take effect on April 2, were also confirmed in a post on his social media platform, Truth Social.
Venezuela, which exported approximately 660,000 barrels of oil per day in 2024, has China as its largest buyer, with 270,000 barrels per day going to Beijing last year, according to data from Kpler. The United States was the second-largest destination, importing around 233,000 barrels per day, followed by India and Spain.
Energy analysts see the move as a direct challenge to China. According to Matt Smith, an oil expert at Kpler, the announcement by the Trump administration appears to be another step aimed at countering China’s influence. The market responded swiftly, with Brent crude futures rising 0.85% to $72.77 per barrel, while U.S. West Texas Intermediate crude climbed 0.86% to $68.87.
Trump has been steadily increasing pressure on the Maduro regime, accusing Venezuela of allowing the notorious criminal gang Tren de Aragua to infiltrate the U.S.
The administration officially designated the gang a foreign terrorist organization, and Trump invoked the 1798 Alien Enemies Act on March 15, claiming Maduro is directing “irregular warfare” against the United States. However, his efforts to deport alleged gang members have been blocked by Federal District Court Judge James Boasberg, leading Trump to call for the judge’s impeachment, a move that has drawn criticism from Supreme Court Chief Justice John Roberts and raised concerns over a potential constitutional crisis.
Chevron’s Venezuela License Extended, But for How Long?
In a parallel development, the Treasury Department on Monday extended Chevron’s license to continue oil production in Venezuela until May 27. The Trump administration had previously signaled plans to reverse a Biden-era decision allowing Chevron to resume operations in the country.
Chevron, which operates in Venezuela through a partnership with the state-owned oil company Petróleos de Venezuela (PDVSA), holds stakes in five major projects. The company’s CEO, Mike Wirth, reportedly lobbied Trump officials last week to secure the extension.
According to sources familiar with White House discussions, the tariffs are designed to weaken China’s influence in Venezuela while safeguarding Chevron’s ability to supply oil to the U.S. However, with Trump’s unpredictability on trade policies, the future of these measures, and their global repercussions, remains uncertain.
Winners and Losers in Trump’s Trade Gambit
Trump’s tariffs are not only country specific, hurting singled out economies but will send ripples across global supply chains.
U.S. allies like Germany and Japan, with massive automobile exports to the U.S., now face uncertainty.
Pharmaceutical companies that rely on international manufacturing hubs, particularly in India and China, are on edge.
Oil markets, already volatile, are bracing for further disruption as Trump’s 25% tariff on nations buying Venezuelan crude threatens to escalate tensions with Beijing.
China, which remains Venezuela’s biggest oil buyer, sees these tariffs as yet another move in Washington’s long-standing economic cold war against Beijing. Meanwhile, European nations that rely on stable trade relations with the U.S. are left frustrated, unable to plan long-term investments amid Trump’s erratic policy shifts. The auto industry, particularly in Germany and Japan, faces potential production slowdowns if U.S. tariffs push up costs.
Yet, even as Trump’s protectionist stance wreaks havoc on global markets, some U.S. industries stand to benefit. Domestic steel and aluminum producers, for instance, are once again enjoying government-backed protectionism. Oil giants like Chevron, which has a stake in Venezuelan energy production, are positioned to gain from policies designed to sideline Chinese influence in the region.
The Broader Geopolitical Chess Game
Trump’s tariff war is also about power. His latest moves against Venezuela are as much about countering China’s growing foothold in Latin America as they are about punishing Nicolás Maduro’s regime. hence, by imposing tariffs on countries that buy Venezuelan oil, Trump is sending a clear message – trade with regimes the U.S. doesn’t like, and there will be consequences.
At the same time, Trump’s aggressive economic nationalism is widening cracks in transatlantic alliances. European leaders, already faced with economic uncertainties and internal political shifts, are finding it harder to trust a U.S. president who changes trade policies overnight. The Biden years had offered a semblance of stability, but now, with Trump back at the helm, traditional allies must once again tread carefully.
The Last Bit, More Chaos, More Brinkmanship?
If Trump’s history is anything to go by, this is only the beginning. More tariffs will likely follow, more exemptions will be dangled as bargaining chips, and more global uncertainty will ensue.
However, will these policies bring the economic “wins” Trump promises for the U.S. economy and more importantly at the cost of placing global markets on edge for the foreseeable future?
