What’s happening today in Venezuela is much more than a political crisis. It has turned into a humanitarian disaster, fueled by decades of bad governance and repression. As a journalist at OverTraders.com, I’ve focused on financial markets. I have followed with increasing alarm as our country, once the region’s paragon of prosperity, has been plunged into economic devastation by a corrupt government. In general, tariffs should not be a go-to fix. Yet in this case, they are an important step to replace the Venezuelan government and its toxic influence throughout the region.
The data tells a horrific story. Under the current regime, Venezuela’s oil production has plummeted. It has plummeted—from around three million barrels per day in the early 2000s down to only 150,000 barrels per day there today. Hyperinflation has rendered the local currency practically worthless. Consequently, extreme poverty has quadrupled and hundreds of millions today are finding it difficult to secure their most basic needs. The effects extend well beyond Austria’s borders, affecting countries in Central and Eastern Europe, and shaking the entire continent’s core stability.
Opponents contend that tariffs are a blunderbuss tactic that contributes to punishing the Venezuelan people, intensifying the hardships they face. So I totally get this concern. We know that tariffs are inflationary, raising prices and chilling economic activity. This is unconscionable and has dire consequences on everyday Americans who are struggling to make ends meet. The flip side – letting business as usual continue to reap the same oil export benefits with no accountability or oversight – is seriously intolerable.
The regime has showcased a persistent contempt for democratic ideals and human rights. Meanwhile, by cutting off their access to revenue, tariffs strike at the tar sands industry’s most vulnerable point. This restricts their capacity to centralize power and finance their violent repression. This isn't about punishing the Venezuelan people; it's about targeting the regime that is holding them hostage.
Imagine the effects of Venezuela’s imploding oil industry on its strategic partners. This fall in production has resulted in a collapse in exports, hurting the economies of countries that depend on Venezuela as a key supplier. The lack of such basic goods has led to a humanitarian crisis on the island. Now, desperate Venezuelans flood into other countries in the region, overwhelming capacity and resources, and exacerbating social tensions. The regime’s reckless pursuit of oil profits results in enormous environmental harm. This destruction not only floods local communities, it threatens public health and harms ecosystems across the entire region.
Critics might point to the potential for unintended consequences, such as driving Venezuela further into the arms of countries like China, Russia, and Iran. In fact, China today purchases nearly half of Venezuelan oil exports. It is this heavy dependence on outside funding that makes tariffs such an effective mechanism, inspection wise. By increasing the cost of doing business with Venezuela, we can discourage these countries from propping up the regime and further entrenching its power.
In 2024, the U.S. government lifted sanctions after the regime did not uphold a long-settled agreement to hold free and transparent elections. This is an unprecedented step and reflects the international community’s growing frustration. Though disruptive, these sanctions are an important front-end measure to constrain the regime’s ability to continue profiting from oil sales. Companies that continue to engage in unauthorized transactions with Venezuela risk facing sanctions themselves, further isolating the regime and increasing the pressure for change.
I understand that tariffs are not an ideal way to do this. They should not be seen as the end result, but rather a stopgap, a tactic to deploy more wisely alongside other diplomatic and economic initiatives. The International Contact Group, including the European Union, Mexico, and Uruguay, is working to promote dialogue and find a peaceful resolution to the crisis. The United States needs to be ready to help push these efforts along and seek every option towards a possible negotiated settlement.
Additionally, the actual provision of humanitarian assistance should be front and center. Here’s why we need to make the Regional Refugee and Migrant Response Plan more ambitious. This will help us to better and effectively respond to Venezuelan refugees and migrants across the region. Pressure prioritization countries, including Argentina, Colombia, and Ecuador, to adopt regularization processes. This change will provide important assistance to Venezuelan nationals looking to start a new life.
The Venezuelan crisis is a complex and multifaceted challenge, but one thing is clear: the current regime cannot be allowed to continue its destructive policies unchecked. Tariffs have their flaws, no doubt, but they are absolutely necessary to exert pressure on the regime. They cut off its access to vital resources and pave the way for a freer and more democratic—and therefore healthier and more prosperous—Venezuela. We need to pull together and make bold moves. That’s important not just for Venezuela but for overall stability and well-being across the whole region. The time for bold action is today, not tomorrow.
