Trump, Venezuela and the Growing Threat to Global Economic Stability

  Since President Donald Trump began his second term on January 20, 2025, the global economy has faced increasing instability, with little sign of relief. One of the earliest disruptions came through a direct challenge to the long-standing doctrine of free trade. In a sharp reversal of tradition, the United States historically a leading advocate of open markets introduced sweeping trade tariffs against numerous countries, fundamentally altering established global trade norms.

Between January and April 2025, the average effective U.S. tariff rate reportedly surged from about 2.5

 percent to nearly 27 percent. By the end of the year, tariff revenues had climbed to an estimated $300

 billion, up from roughly $100 billion in 2024. These measures ignited trade disputes between the U.S.

 and major economies such as China, Canada, Russia, and Mexico. Global financial institutions,

 including the International Monetary Fund, appeared largely sidelined, reinforcing perceptions that

 international bodies struggle to restrain powerful nations.

Before the effects of the tariff wars could settle, another major shock followed: the U.S. military

 intervention in Venezuela on January 3, 2026. Entering the country without invitation, U.S. forces

 detained President Nicolás Maduro and assumed control of Venezuela’s crude oil sector. Oil is not

 merely a commodity; it underpins global economic activity. This move revived echoes of the Monroe

 Doctrine and signaled a bold assertion of economic and geopolitical power.

Venezuela holds the world’s largest proven oil reserves, giving it significant influence over global

 supply and prices. Control of this resource, not regime change appears to be the central issue. The

 takeover risks triggering economic downturns in oil-dependent countries, as global supply dynamics

 become more volatile. Nations such as Nigeria, whose revenues rely heavily on oil, may face budgetary

 instability, declining incomes, and increased risk of recession. These countries may be forced to

 recalibrate fiscal plans, cut spending, and prepare for prolonged economic uncertainty.

On the global stage, the move has raised concerns about economic sovereignty and the growing use of

 economic power as a tool of dominance. While some nations may feel intimidated, others particularly

 China, a major stakeholder in Venezuelan oil are likely to seek alternative strategies rather than submit

 to pressure. Brazil has already called for regional dialogue.

Ultimately, these developments have deepened global resentment toward the United States. President

 Trump’s “America First” approach may deliver short-term domestic gains, but it raises pressing

 questions about long-term global stability. As economic tensions escalate, the world may be edging

 toward a new phase of economic domination one that demands serious international reflection and

 reform.