Trade of Venezuelan Oil to China Stalls After New Trump Order

Trade of Venezuelan oil to top buyer China stalled on Tuesday after U.S. President Donald Trump's order threatening tariffs on countries buying from Caracas created fresh uncertainty, days after U.S. sanctions targeting China's imports from Iran.

Trump's order, which caught traders and refiners in China by surprise, states that the U.S. may impose 25% tariffs on goods from any country importing Venezuelan oil, at the discretion of the secretary of state, starting on April 2.

Chinese traders and refiners said they were waiting to see how the order would be implemented and whether Beijing will direct them to stop buying, although several industry insiders said they expect flows ultimately would continue, noting the frequent shifts in Trump's tariff threats.

A top executive with a regular Chinese trader of Venezuelan oil said the firm will refrain from buying any April shipments.

"The worst thing in the oil market is uncertainty. We won't dare touch the oil for now," he told Reuters.