Tariffs and the Oil Trade: Unpacking the Legal Consequences for Indonesia and Venezuela

Abstract

Tariffs are taxes imposed on goods imported into a country, paid by importers to the country of origin of the imported goods. Tariff policies play an important role in global trade, including in the export-import activities of the global petroleum industry. The petroleum industry is one of the most important industries for the global economy. This research aims to analyse and compare the impact of tariff policies on oil and gas export-import activities in Indonesia and Venezuela. The executive policies issued by President Donald Trump have caused significant fluctuations in the trade balances of many countries. This research is an empirical legal study that uses a case study approach to examine the emergence of executive policies related to import taxes from partner countries in the United States. The legal materials used are secondary legal sources taken from various scientific articles and journals that have been compiled to obtain conclusions for the author. The results of the research show that there is a significant impact on Venezuela and the United States from the executive policy. For Venezuela, the imposition of sanctions can be considered an additional sanction, as sanctions have already been imposed for human rights violations under the regime of Nicholas Maduro. For Indonesia, the executive policy has caused Indonesia to postpone export activities to the United States until the tax rate is stabilised.