The shipment of Venezuelan oil to China, its top buyer, was disrupted on Tuesday due to President Donald Trump's threat of imposing tariffs on countries purchasing from Caracas. This move raised uncertainty among traders and refiners in China, especially after the recent U.S. sanctions on China's imports from Iran.

President Trump's unexpected order allows for potential 25% tariffs on goods from any country importing Venezuelan oil from April 2 onwards. Chinese traders and refiners are cautious, awaiting further directives from Beijing on whether to halt purchases. Despite the confusion caused by the order, some industry insiders predict that oil flows will likely continue, given the shifting nature of Trump's tariff policies.

A prominent executive from a Chinese oil trader indicated that their company would avoid acquiring Venezuelan oil shipments in April due to the prevailing uncertainty. Another trading executive from an independent refinery expressed concern about the chaos caused by the order, affecting buyers in Singapore as well. The situation was described as messy, particularly as China is already engaged in a tariff war with the U.S.

As a result of seeking clarity on the availability and pricing of Venezuelan oil, Chinese teapot refiners, who are significant buyers of Venezuelan crude, have temporarily paused their purchases. China stands as Venezuela's biggest oil importer, receiving 503,000 barrels per day of Venezuelan crude and fuel, rebranded mainly as Malaysian post-transshipment.

In response to the U.S. move, Beijing reiterated its opposition to unilateral sanctions, emphasizing its disapproval of the latest action. The Chinese government has faced additional tariffs from the U.S. since February, prompting retaliatory measures, export restrictions, and investigations into foreign companies by China.