The United States has unveiled a groundbreaking strategy to impose 25% tariffs on countries purchasing sanctioned Venezuelan oil, expanding its use of punitive economic measures. This move, authorized under the 1977 International Emergency Economic Powers Act, marks a significant departure from traditional sanctions that target individuals and companies. Analysts suggest this approach could be replicated against other US adversaries like Russia and Iran.
The policy is expected to deliver widespread economic consequences, applying pressure across entire economies rather than targeting specific entities. While enforcement challenges remain, especially given Venezuela’s history of masking oil shipments, the swift market response reflects the potential potency of the measure. Critics, including China and Venezuela, have condemned the move, accusing the US of violating international trade rules.
