Beyond  /  Explainer

How Four U.S. Presidents Unleashed Economic Warfare Across the Globe

U.S. sanctions have surged over the last two decades and are now in effect on almost one-third of all nations. But are they doing more harm than we realize?

Sanctions — or even just the threat of them — can be an effective policy tool, a way to punish bad behavior or pressure an adversary without resorting to military force. Sanctions have allowed U.S. governments to take moral, economically meaningful stands against perpetrators of war crimes. They helped bring an end to South Africa’s apartheid regime and contributed to the eventual overthrow of Serbian dictator Slobodan Milosevic. Even when they fail, proponents say, they can be preferable to the alternative, which might be doing nothing — or going to war.

Still, North Korea has been sanctioned for more than a half-century without halting Pyongyang’s efforts to acquire nuclear weapons and intercontinental ballistic missiles. U.S. sanctions on Nicaragua have done little to deter the authoritarian regime of President Daniel Ortega. Two years of sanctions on Russia over its invasion of Ukraine have degraded Moscow’s long-term economic prospects and raised the costs of military production. But these sanctions have also spawned a “dark fleet” of ships selling oil outside international regulations, while bringing the Kremlin into closer alliance with Beijing.

Alarm about sanctions’ rise has reached the highest levels of the U.S. government: Some senior administration officials have told President Biden directly that overuse of sanctions risks making the tool less valuable. And yet, despite recognition that the volume of sanctions may be excessive, U.S. officials tend to see each individual action as justified, making it hard to stop the trend. The United States is imposing sanctions at a record-setting pace again this year, with more than 60 percent of all low-income countries now under some form of financial penalty, according to a Washington Post analysis.

“It is the only thing between diplomacy and war and as such has become the most important foreign policy tool in the U.S. arsenal,” said Bill Reinsch, a former Commerce Department official and now the Scholl chair in international business at the Center for Strategic and International Studies, a Washington-based think tank.

“And yet,” Reinsch said, “nobody in government is sure this whole strategy is even working.”