U.S. President Donald Trump has moved to pressure Venezuelan President Nicolás Maduro’s administration, which is embroiled in allegations of election fraud. By overturning an oil trade agreement established under the previous Biden administration, Trump’s decision is expected to exacerbate Venezuela’s economic crisis, despite the country holding the world’s largest proven oil reserves.
On Wednesday, Trump announced on his social media platform, Truth Social, “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,” adding that the related agreement will expire on March 1. This means that Trump is canceling the Biden administration’s 2022 decision, which allowed U.S. oil company Chevron to expand crude oil production in Venezuela and import petroleum products into the U.S.
The Trump administration’s decision to reimpose sanctions on Venezuela is primarily driven by concerns over the Maduro government’s failure to ensure electoral fairness in the July 2024 presidential election and its reluctance to deport undocumented criminals residing in the United States promptly.
Having begun his third term in January, Maduro had previously expressed his willingness to build a mutually beneficial win-win relationship with the second Trump administration. On January 31, he reportedly discussed a Zero Agenda with Richard Grenell, the U.S. Special Envoy for North Korea and Venezuela, suggesting a fresh start regardless of past tensions. Some analysts had speculated that Trump’s business acumen could positively influence relations with Venezuela, given its vast oil reserves.
However, with the latest announcement, Venezuela’s economic difficulties are expected to worsen. The Maduro government, which has already been grappling with economic turmoil due to U.S. and Western sanctions, has strongly condemned these measures, calling them an economic war designed to weaken the country and an illegal act of Western imperialist aggression.