IMPOSING TARIFFS ON COUNTRIES IMPORTING VENEZUELAN OIL

March 24, 2025

Executive Orders

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Action Summary

Purpose and Context: Address the ongoing national emergency with respect to Venezuela by countering the destabilizing actions of Nicolás Maduro’s regime and the transnational terrorist activities of the Tren de Aragua gang.
Findings:
- The Maduro regime’s actions—including undermining democratic institutions, economic mismanagement, public corruption, and causing a humanitarian crisis—continue to threaten U.S. national security.
- The open-borders policies of the previous administration allowed the infiltration of the dangerous Tren de Aragua gang into U.S. cities, further exacerbated by Venezuela’s lax border control.
Tariff Imposition:
- A 25% tariff may be levied on all goods imported into the United States from any country that imports Venezuelan oil, either directly or indirectly, effective April 2, 2025.
- The tariff is imposed supplemental to existing duties under other statutory authorities.
- The Secretary of State, in consultation with other key officials, has the discretion to determine the imposition and expiration of the tariff.
Administration and Enforcement:
- The Secretaries of State, Treasury, Commerce, Homeland Security, and the U.S. Trade Representative are authorized to implement and enforce the tariff measures.
- Regulations, guidance, and necessary determinations will be issued by the Secretary of Commerce in coordination with others to ensure compliance.
- Any conflicting prior orders or proclamations are modified or terminated as needed to give full effect to this order.
Reporting and Review: Periodic assessments and reports regarding the effectiveness of the tariffs and the conduct of the Maduro regime are to be submitted every 180 days to the President.
Definitions and Scope:
- “Venezuelan oil” covers crude oil or petroleum products coming from Venezuela regardless of the producer’s nationality.
- “Indirectly” includes transactions involving intermediaries or third countries where the Venezuelan origin of the oil can be reasonably traced.
Effective Date: The order takes effect at 12:01 a.m. Eastern Daylight Time on April 2, 2025.

Risks & Considerations

The imposition of a 25% tariff on goods from countries importing Venezuelan oil could lead to increased costs for imported goods, potentially affecting the university’s procurement expenses if any supplies or equipment are sourced from these countries.
There is a risk of strained international relations with countries affected by the tariffs, which could impact Vanderbilt University’s international collaborations and partnerships, particularly if these countries are involved in academic exchanges or research projects.
The focus on national security and foreign policy threats posed by the Maduro regime and associated criminal organizations may lead to increased scrutiny and regulatory compliance requirements for international students and faculty from Venezuela or neighboring regions.
Vanderbilt University may need to consider the potential impact on its student body, particularly for students from countries affected by the tariffs, as they may face financial challenges or changes in their ability to study in the United States.

Impacted Programs

Vanderbilt’s International Programs may need to reassess partnerships and collaborations with institutions in countries affected by the tariffs, ensuring compliance with new regulations and maintaining strong international relations.
The Office of Global Safety and Security might need to enhance its monitoring and support for students and faculty traveling to or from regions impacted by the executive order, ensuring their safety and compliance with U.S. policies.
Vanderbilt’s Procurement Office could face challenges in sourcing materials and equipment from countries subject to the tariffs, necessitating a review of supply chains and potential cost adjustments.
The Center for Latin American Studies may see increased demand for expertise and research on the political and economic implications of U.S. policies towards Venezuela and the broader region.

Financial Impact

The tariffs could lead to increased costs for goods and services sourced from affected countries, impacting the university’s budget and financial planning.
Potential disruptions in international collaborations and partnerships may affect funding opportunities and research grants, particularly those involving countries subject to the tariffs.
Changes in the geopolitical landscape could influence the demographics of international students applying to Vanderbilt, potentially affecting tuition revenue and financial aid distribution.
There may be opportunities for Vanderbilt to secure funding for research on the economic and political impacts of the executive order, particularly through collaborations with government agencies and think tanks.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the implementation of tariffs on countries importing Venezuelan oil, as these could impact international collaborations and partnerships. Understanding the geopolitical and economic implications will be crucial for strategic planning.
The Vanderbilt Center for Latin American Studies should conduct research on the effects of U.S. sanctions and tariffs on Venezuela and its neighboring countries. This research can provide insights into regional stability and inform policy recommendations.
Vanderbilt’s Economic Department should analyze the potential economic impacts of the tariffs on global markets and supply chains. This analysis can help the university anticipate changes in the economic landscape that may affect its operations and investments.
The Vanderbilt Law School should explore the legal implications of the executive order, particularly in terms of international trade law and compliance. This exploration can guide the university in navigating legal challenges and opportunities.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Political Science Department to engage in policy analysis and advocacy regarding U.S. foreign policy towards Venezuela. By providing evidence-based recommendations, the department can influence policy discussions and decisions.
Vanderbilt can leverage its expertise in international relations to host conferences and workshops on the implications of the executive order. This can position the university as a leader in the dialogue on U.S.-Venezuela relations and global trade policies.
The focus on national security and foreign policy offers an opportunity for Vanderbilt’s Security Studies Program to expand its research and educational offerings. By examining the security implications of the executive order, the program can enhance its curriculum and attract students interested in international security issues.

Relevance Score: 3 (The order requires some adjustments to processes or procedures at Vanderbilt to address potential impacts on international collaborations and research opportunities.)

Average Relevance Score: 4

Timeline for Implementation

Tariff Imposition and Order Effectiveness: The order takes effect at 12:01 a.m. EDT on April 2, 2025, and tariffs may be imposed on or after this date.
Periodic Reporting: The Secretary of State and the Secretary of Commerce must submit periodic reports to the President within 180 days of the order’s date and at least every 180 days thereafter.

Relevance Score: 5

Impacted Government Organizations

Department of State: Charged with determining whether the tariffs on countries importing Venezuelan oil shall be imposed and coordinating with other agencies in its implementation.
Department of the Treasury: Consulted to assist in decisions regarding tariff imposition and to coordinate with the Department of State and others for enforcement.
Department of Commerce: Responsible for determining the direct or indirect importation of Venezuelan oil, issuing necessary regulations and guidance, and coordinating enforcement efforts.
Department of Homeland Security: Involved in the coordination process with the Department of State and other agencies to enforce the tariff measures.
United States Trade Representative (USTR): Takes part in determining and implementing tariff actions as part of the interagency cooperation outlined in the order.
Department of Justice (Attorney General): Collaborates with the Department of Commerce and the Department of State to ensure compliance and enforcement measures are upheld.
Office of Management and Budget (OMB): Though not directly implementing tariffs, its functions are acknowledged and preserved under the order, ensuring that its budgetary, administrative, and legislative roles are not impaired.

Relevance Score: 3 (Several federal agencies are impacted, with interagency coordination mandated across key departments.)

Responsible Officials

Secretary of State – Leads the determination and imposition of tariffs on goods from countries importing Venezuelan oil and coordinates overall policy execution.
Secretary of the Treasury – Consulted for economic and financial implications in deciding tariff measures.
Secretary of Commerce – Authorized to assess import activities of Venezuelan oil, issue necessary regulations, and coordinate with other departments.
Secretary of Homeland Security – Consulted to ensure that national security considerations are integrated into tariff implementation.
United States Trade Representative – Works alongside the aforementioned officials on decisions related to international trade ramifications.
Attorney General – Collaborates with the Secretary of Commerce in determining applicable import conditions and enforcement measures.

Relevance Score: 5 (Directives affect White House and Cabinet-level officials, ensuring comprehensive high-level coordination across multiple agencies.)