Trump’s Tariffs Spark Fresh Oil Crisis in Venezuela

A 25% US tariff on countries buying Venezuelan oil has sent shockwaves through global markets and crashed the local currency.

The measure is seen as the Trump administration’s boldest move to throttle Venezuela’s oil-based economy and weaken the Maduro regime.

Crude Buyers Back Off as Tensions Rise

India’s Reliance Industries and Spain’s Repsol have backed off from Venezuelan oil purchases, rerouting tankers and halting shipments.

This has raised concerns over Venezuela’s access to foreign currency, as oil exports account for over 90% of its export revenue.

The Bolivar Plunges Amid Dollar Scramble

With oil revenues expected to plummet, the bolivar has plunged on the black market.

The exchange rate jumped from 66 to over 100 bolivars per dollar, widening the gap with the official rate to a five-year high.

Inflation Risks Return as Stabilization Unravels

The dollar had helped stabilize Venezuela’s inflation over the past year, but the new oil sanctions threaten to unravel that fragile progress.

Analysts say inflation will spike again as companies turn to the black market for USD to survive.

Chevron Ordered to Exit, Oil Revenues Squeezed

As a result, oil revenue flows into the official currency market have already dropped by half in 2025, according to Ecoanalitica.

Maduro Faces Mounting Economic Headwinds

With central bank reserves running dry and the economy set to shrink for the first time since 2020, Maduro’s options are limited.

Relaxing foreign currency controls is one possible strategy to ease pressure on retailers and importers.

Venezuela’s Oil Crisis Could Get Worse

“This is the strongest measure a US administration has taken from a cash flow and oil production perspective,” said economist Alejandro Grisanti.

Tariffs Push Venezuela Toward Collapse

The Trump administration’s aggressive oil tariffs have not only undermined Venezuela’s key revenue stream but triggered a currency crash.

With inflation poised to surge and access to US dollars drying up, the economic outlook appears increasingly grim.