USA TODAY Editors

USA TODAY

Venezuela appears to be sliding toward authoritarian rule under President Nicolás Maduro and his Socialist Party. They are moving to rewrite the South American country's constitution to enhance their powers and bypass political opponents who control the national congress.

The Trump administration says Maduro, who ordered the arrest of prominent political opponents Tuesday, is behaving like a dictator trying to circumvent Venezuela's democratic institutions. The political crisis comes as the economy continues to head for collapse and Maduro's public support sinks.

Here are four reasons why the turmoil in Venezuela has repercussions in the United States:

Oil

Venezuela has the world's largest oil reserves, and any disruption in supply would surely rattle global energy and financial markets. That could send U.S. gas prices higher and Wall Street stock prices lower.

The U.S. is Venezuela's largest customer — about 750,000 barrels a day. The South American country also imports refined products from the U.S. The U.S. has imposed sanctions on Venezuela over its authoritarian moves and is looking at tougher sanctions affecting the country's vital oil exports. So far, the Trump administration has declined to do so, but the prospect is making world markets nervous.

Refugees

Venezuela's economic woes — rising unemployment, sky-high inflation and shortages of basic goods — has unleashed a flood of refugees seeking to enter the U.S. A record 18,155 people applied for asylum in 2016, more than any other country. So far this year, 8,300 have applied for asylum, nearly double the number last year.

President Trump's travel ban temporarily shuts down the refugee program, but as his administration confronts Maduro, it may feel pressure to admit Venezuelans fleeing their country on humanitarian and political grounds.

Democracy

Just four decades ago, Latin America was plagued by dictatorships and military coups that created constant political chaos and discouraged U.S. business investments and tourism. Today, the vast majority of countries south of the U.S. border are governed by democracies that have brought prosperity and relative stability to the region.

The U.S. has been a major player in spreading democratic institutions. Retrenchment in Venezuela threatens to spread to other countries with recent anti-U.S. leaders, such as Ecuador and Bolivia.

U.S. foes

As his confrontation with the United States grows, Maduro has moved to improve economic ties with other governments that have strained or hostile relations with the Trump administration, including Cuba, Russia and China.

If Trump moves to isolate Venezuela further, Maduro could thumb his nose at U.S. sanctions against Iran and North Korea, and develop ties with those two U.S. foes.

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