In a potential policy pivot, President Donald Trump is deliberating whether to preserve an oil accord between the U.S. and Venezuela, a deal inked under the administration of former President Joe Biden.
Originally inclined to cease U.S. oil companies’ operations in Venezuela, Trump is now exploring alternative measures such as tariffs, Fox News reported.
After issuing a directive for Chevron and other American firms to stop their Venezuelan operations, President Trump’s dissatisfaction stemmed from the Maduro regime's purported failure to meet certain agreement expectations. These included electoral reforms and the expedited return of criminals who had been sent to the U.S.
Last month, a key meeting at the White House saw President Trump discussing potential strategies with cabinet members—Chris Wright from the Department of Energy, Doug Burgum from the Department of the Interior, and Howard Lutnick from the Department of Commerce—along with representatives from the oil industry and energy advocate groups.
The focus was on how to leverage Venezuelan oil imports in a manner that aligns with U.S. foreign policy, while also benefiting American consumers and employment. Howard Lutnick proposed that instead of revoking oil firms' rights to operate, imposing tariffs on Venezuelan oil might pressurize Maduro effectively.
This suggestion appeared to resonate with Trump, who has been vocally critical of Maduro and the existing oil deal, labeling it as ineffective on various public platforms. “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated November 26, 2022,” Trump declared on social media.
During the White House meeting, discussions revolved around the critical role of Venezuelan heavy crude oil, essential for Gulf Coast refineries in the U.S. Balancing this with the objectives of U.S. foreign policy represented a significant challenge.
The attendees pondered over boosting the U.S.'s foreign policy stance while not jeopardizing the advantageous economic outcomes derived from Venezuelan oil imports. Their deliberations emphasized strategic economic benefits concurrently with strong foreign policy measures.
President Trump’s affirmative stance on Lutnick’s tariff proposal signals a strategic shift in dealing with Venezuela compared to the initial, more drastic approach of halting all operations. Trump emphasized the failure of the Venezuelan regime to fulfill their promises, particularly concerning the handling of criminals, which remains a sticking point in U.S.-Venezuela relations.
Here's how Trump further detailed his concerns:
Trump: "Additionally, the regime has not been transporting the violent criminals that they sent into our Country (the Good Ole’ U.S.A.) back to Venezuela at the rapid pace that they had agreed to."
An influential player in Latin American politics, Juan Guaidó, expressed his support for a stronger, more democratic Latin America. Cognizant of Trump’s hardline stance, Guaidó remarked, “It is accurate, correct and timely to confront that dictatorship and also [send] a message to those who today usurp [power] in Cuba and Nicaragua that they will not have impunity.”
Meanwhile, U.S. Representative Carlos Gimenez highlighted that these efforts are just initial steps toward broader objectives of regional liberation and democracy, emphasizing the aspirations of people in Cuba, Venezuela, and Nicaragua. Chris Wright has previously stated, reinforcing Trump's economic priorities, that the administration's goal is to ensure low prices and more jobs within the United States.
In sum, the Trump administration is leaning towards integrating tariffs on Venezuelan oil rather than outright cessation of American firms' operations. This strategy aims to maintain both the economic benefits essential for U.S. refineries and align them with broader foreign policy objectives that seek to challenge and change the governance in Venezuela. Two crucial elements—preserving U.S. energy strategies while promoting foreign policy goals—are being juggled carefully, indicating a nuanced approach to international relations and domestic economic interests.
