Economic sanctions are a tool used by states to exert political pressure on target countries. They can take a broad range of forms and can be aimed at limiting trade (e.g., an embargo) or at reducing or even denying military aid (e.g., the US steel tariff). These restrictions typically aim to maintain strategic and technological advantages over rival nations or to force targeted countries into compliance with international law and norms.
As a result, they can have substantial and wide-ranging economic, political, and humanitarian impacts on the targeted country. Indeed, former UN Secretary General Boutros Boutros-Ghali argued that sanctions are “blunt instruments and legitimate means of putting pressure on political leaders whose behaviour is unlikely to be changed by the plight of their people.”
A key factor that contributes to these wider impacts is that sanctions can exacerbate domestic economic distress for individuals and households. This can make it more difficult to support civic society and other forms of constructive engagement with the target state, for example by making it harder to transfer cash and other relief after natural disasters.
Sanctions can also reshape global industries, as businesses struggle to navigate regulatory landscapes, adjust supply chains, and absorb the cost of new barriers to trade. Moreover, sanctions that depend on blocking access to resources can weaken the sanctioning state’s monopoly and encourage competitors to seek alternatives. This is particularly true for environmental sanctions, which can have lasting effects that are often underestimated and poorly understood.
