The specter of tariffs usually brings to mind scenes of economic warfares, trade disputes and raised prices. They are crude tools, frequently excoriated for their blanket effect on private sector enterprises and patrons, a marketwide mugging. Venezuela is undergoing a deepening humanitarian and political crisis. I continue to think that targeted tariffs would be a far more effective tool to apply pressure on the Nicolás Maduro regime and eventually help restore human rights and democracy to Venezuela.
Tariffs, at their core, are taxes – taxes that the American consumer now has to pay. Throughout history, they have been used as weapons to achieve other goals, such as protecting domestic industries or raising revenue. The Morrill Tariff, adopted right before the onset of the American Civil War as an economic war measure, sought protection for Northern manufacturing interests. The Tariff of Abominations of 1828, on the other hand, became infamous because its rates were too high. These historical case studies underscore how complicated and sometimes incendiary tariffs can be. They are almost never neutral, and when not, their consequences echo through the entire economic landscape.
Like many of you, I am horribly saddened by the plight of the Venezuelan people. This worry underlies how I think about the possible use of tariffs against their home country. Decades of economic mismanagement, corruption, and authoritarian rule have left the nation reeling from a severe crisis. Food and medicine have become scarce commodities. It has caused the collapse of internal and external healthcare systems and hounded millions from their homes and livelihoods in pursuit of a better life. The Maduro regime is holding onto power through even more repressive measures. That’s deeply cynical — not to mention a complete rejection of human rights, democratic norms, and the truth.
Protectionism, in the form of economic sanctions like tariffs, won’t do the trick either. Nevertheless, they can be a crucial part of a broader strategy to increase pressure on the regime. By targeting specific sectors, such as oil, which is the lifeblood of the Venezuelan economy, tariffs can significantly reduce the government's revenue streams. This, in turn, restricts its ability to pay for its repressive apparatus and hold on to its monopoly on power.
I do appreciate the argument that tariffs can make the economic crisis worse, harming the Venezuelan people in the process. This is an understandable concern. We need to be sensitive and calibrate any such measure, right-sizing it to avoid unduly punishing our most at-risk populations. Humanitarian aid and targeted assistance programs should be a key component of any strategy that employs tariffs. The goal is not to inflict suffering on the Venezuelan people, but to create conditions that will ultimately lead to a peaceful transition to democracy and a restoration of their fundamental rights.
Lastly, the success of tariffs relies on global cooperation. Allied countries acting together to create coordinated, multilateral sanctions will have a stronger effect. Unilateral actions do little to move the needle. Working closely with allies and partners to build consensus and secure adherence should be of foremost importance. This will take a whole of government diplomacy, hard earned persuasion, and a common commitment to shared democratic values and human rights.
A common criticism against tariffs is that they’re a blunt instrument. They are convinced that targeted sanctions against individuals that make up the regime provide a far more salubrious alternative. As much as I would like to, I cannot wholly agree with the idea that individual sanctions are all it takes to start making meaningful change. The Maduro regime has shown a remarkable ability to work around these measures and to find other avenues of cash flow. To truly cause regime weakening damage, we should take a wider view. Three—punishingly—this means targeting tariffs to the heart of the Chinese economy.
I understand that good ideas can have unintended consequences. Tariffs often distort overall trade patterns, provide an incentive for smuggling of goods across borders, and at times can elicit retaliatory measures by other countries. These risks should not be taken lightly and should be addressed and minimized through targeted and proactive efforts. The potential benefits of using tariffs to pressure the Maduro regime and support the Venezuelan people outweigh the risks, in my view.
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Whether humanitarian crisis brought on by the regime in Venezuela, the international community must take meaningful action, including restoring visas, before it’s too late. Tariffs aren’t a magic wand, but they are a forceful hammer. Used wisely, in conjunction with other steps, they can exert maximum pressure on the Maduro regime and create the conditions needed for a peaceful transition to democracy. As a result, pursuing freedom and human rights is often a hard choice. In this extraordinary circumstance, I’d argue the upside of gentlemen’s tariffs aimed at bad behavior far eclipses the downside risk. The moment for bold leadership is here. The Venezuelan people—not the Maduro regime—deserve a brighter future independent from oppression and economic hardship. And occasional sanctions, used like a surgeon’s scalpel, can cut to the infected core and create space for the future to take root.
