China’s Purchases Stall After Trump’s Tariff Threat on Buyers of Venezuelan Oil

China, the biggest buyer of oil from Venezuela, saw trade with Venezuela stall on Tuesday after U.S. President Donald Trump threatened on Monday 25% tariffs on the goods of any country buying Venezuelan oil.

Traders and refiners in China were caught off guard by Monday’s executive order and are waiting to see whether Beijing will have some direction on the matter, trading sources told Reuters.

China is the biggest buyer of Venezuelan oil and is estimated to be importing via various – often opaque – channels about 500,000 barrels per day (bpd) of crude oil and fuel from Venezuela. A large share of the cargo is being rebranded as coming from Malaysia after trans-shipments in Asian waters.