Wider U.S. Sanctions on Venezuela Risk Biting Both Countries
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The United States and Venezuela are on a collision course as President Trump promises to inflict economic pain if President Nicolás Maduro goes through with an election designed to enhance his powers.
Mr. Maduro has pledged not to back down from the vote on Sunday, so the only question is whether the collision will be a fender-bender or a thundering crash.
The Trump administration’s move on Wednesday to impose sanctions on 13 senior Venezuelan officials and others close to the Maduro regime was relatively modest. But American officials stressed that it was merely a precursor to escalating actions should the vote go forward.
The two countries’ economies are tightly intertwined through the oil that Venezuela sells to the United States: It accounts for roughly 10 percent of the oil America imports. And Washington has powerful tools at its disposal, including a complete prohibition on Venezuelan oil.
Whatever Mr. Trump decides to do next is likely to echo, from the Venezuelan Treasury to the American gasoline pump.
Despite nearly two decades of sour relations with Venezuela, the United States has enormous leverage as one of its most important customers and as one the few countries with refineries capable of processing poor-quality heavy crude.
The Maduro regime is already tottering, struggling to meet its financial obligations, feed its people and pay its oil workers, soldiers and police officers. Additional American sanctions could be a devastating economic blow, prompting the country to move further toward dictatorship and toward an even closer embrace of China and Russia.
The result could be more violent strife or even a military coup. And shock waves across the hemisphere could create more complications for the Trump administration as it tries to focus on Iran and North Korea.
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