The Global Impact of U.S. Economic Sanctions
The United States is engaged in a massive economic war that reaches across the globe, affecting a significant portion of the world’s nations. A recent report reveals that the U.S. government has imposed sanctions on one-third of the world’s countries, and over 60% of poorer nations have been subjected to these restrictions. This aggressive strategy reflects the U.S.’s desire to maintain global dominance through economic pressure, often without regard for international law. The effects of these sanctions, however, extend beyond governments and have devastating consequences for ordinary citizens in these targeted nations.
The Widespread Reach of U.S. Sanctions
The U.S. has increasingly used sanctions as a means of controlling global affairs, often targeting sectors that are essential to a country’s economic stability. These sanctions are typically imposed unilaterally, without the backing of the United Nations, making them illegal under international law. Despite claims that these measures are carefully crafted to target specific institutions, companies, or individuals, the broader impact often affects the entire population. The sanctions deter foreign companies and financial institutions from doing business with sanctioned countries, isolating them from international markets. This has led to severe shortages of essential goods, including food and medicine, exacerbating the already challenging conditions in many of these nations.
The U.S. government claims that its sanctions allow exceptions for humanitarian goods, such as food and medicine. However, the reality on the ground tells a different story. Foreign companies avoid engaging with sanctioned countries, fearing secondary sanctions from the U.S. This results in a lack of essential imports, leading to high inflation, economic instability, and severe hardships for the civilian population. Many countries, particularly those in underdeveloped nations, have been economically devastated by these policies, as their industries collapse under the weight of U.S. sanctions.
The Use of Economic Sanctions as a Foreign Policy Weapon
Sanctions have become a key pillar of U.S. foreign policy. Successive administrations, regardless of political affiliation, have relied on sanctions as a means to pressure and destabilize governments that do not align with U.S. interests. This policy has spanned several decades, starting with the Clinton administration and continuing through the presidencies of George W. Bush, Barack Obama, Donald Trump, and Joe Biden.
The Bush administration used sanctions heavily in the aftermath of the 9/11 attacks, as part of its “war on terror.” Sanctions targeted countries such as Iraq, Iran, and North Korea, as the U.S. sought to weaken regimes it viewed as threats. The Obama administration expanded sanctions on Iran, aiming to pressure the country into negotiating a nuclear deal. Under Trump, the use of sanctions reached unprecedented levels, particularly with Venezuela and Cuba. Trump’s administration sought to suffocate these leftist governments by crippling their economies. Trump’s actions in Venezuela, for example, led to a severe economic contraction that mirrored the devastating impact of the U.S. Great Depression. Under Biden, sanctions have continued, with a focus on Russia and China, particularly in the context of the war in Ukraine and the growing U.S.-China rivalry.
According to a Washington Post report, as of April 2024, the U.S. had more than 15,000 sanctions in place, targeting a wide range of nations and entities. Switzerland, the second-most active country in terms of sanctions, only had around 5,000. The European Union, in third place, imposed just 4,800 sanctions, further illustrating the outsized role of the U.S. in global economic warfare. In comparison, the United Nations, which is the only body with the legal authority to impose sanctions according to international law, had only 875 sanctions in place at the time of the report. The unilateral nature of U.S. sanctions, which bypasses the U.N. Security Council, directly violates international law.
The Human Cost of Sanctions in Venezuela
One of the most severe examples of the humanitarian toll exacted by U.S. sanctions is Venezuela. U.S. sanctions have decimated Venezuela’s economy, leading to one of the worst peacetime economic collapses in modern history. In 2020, a Washington Post report noted that Venezuela’s economic contraction, driven by U.S. sanctions, was three times larger than the Great Depression in the United States. This unprecedented collapse has led to severe shortages of food, medicine, and other basic necessities, creating a humanitarian crisis in the country.
The Center for Economic and Policy Research reported that U.S. sanctions on Venezuela from 2017 to 2018 led to the deaths of over 40,000 people. These deaths were directly linked to the lack of access to life-saving medicine, food, and medical equipment. By 2020, the former United Nations Special Rapporteur on Human Rights, Alfred de Zayas, estimated that the death toll had risen to over 100,000 people. These figures highlight the lethal consequences of U.S. sanctions, which target not only governments but also the most vulnerable segments of the population.
A report from The Center for Economic and Policy Research also detailed how sanctions prevented Venezuela from importing vital medical supplies, leading to a surge in preventable deaths. These sanctions have effectively created a blockade around Venezuela, isolating it from the global economy and crippling its ability to recover. The suffering in Venezuela is far from an unintended consequence; U.S. policymakers have openly acknowledged that the goal of these sanctions is to pressure the Venezuelan government into collapse.
Cuba: Decades of Suffering Under U.S. Sanctions
Cuba has been another long-standing victim of U.S. economic sanctions. Following the Cuban Revolution in 1959, the U.S. government sought to destabilize the newly established leftist government led by Fidel Castro. In 1960, a U.S. State Department memo acknowledged that a majority of the Cuban population supported the new government. With no effective opposition to rely on, the memo outlined a strategy to use economic sanctions to create hardship among the Cuban people, in the hopes of inciting a revolution.
The memo recommended that the U.S. undertake actions that would “weaken the economic life of Cuba” and bring about hunger and desperation. This policy of economic warfare has continued for decades, despite the Cuban people overwhelmingly supporting their government. The U.S. sanctions have caused widespread suffering, limiting access to basic necessities and stifling the country’s economic development.
In recent years, the sanctions have continued to prevent Cuba from acquiring critical medical equipment, further exacerbating the difficulties faced by the population. The U.S. government’s strategy remains the same: use economic pressure to create internal dissatisfaction and push for regime change. Despite these efforts, the Cuban government has remained in power, and the sanctions have largely harmed the civilian population.
Russia and China: Too Large to Cripple
While smaller nations such as Venezuela and Cuba have borne the brunt of U.S. sanctions, larger economies like Russia and China have shown greater resilience. In 2022, after Russia’s invasion of Ukraine, the U.S. imposed some of the heaviest sanctions in history on Russia. However, Russia’s economy has proven difficult to cripple. The Russian government has responded by ramping up industrial production and investing in reindustrialization efforts, particularly in regions that were de-industrialized following the collapse of the Soviet Union.
Russia’s economy has continued to grow, defying predictions that it would collapse under the weight of U.S. sanctions. A report by the Financial Times described how Russia’s economy is undergoing a “rebirth” of manufacturing. The Russian government has implemented policies aimed at import substitution, reducing its reliance on Western goods and strengthening domestic industries. This process has allowed Russia to maintain economic stability, even as it faces a barrage of sanctions from the U.S. and its European allies.
Similarly, China has also resisted the effects of U.S. sanctions, particularly in the technology sector. The U.S. has imposed tariffs and restrictions on Chinese exports, especially in advanced technologies like semiconductors. Despite these measures, China has continued to make significant advancements in manufacturing and technological innovation. This has led to a growing divide between the U.S. and China, as both nations increasingly seek to outmaneuver each other in the global economy.
The Rise of Alternative Financial Systems
The extensive use of U.S. sanctions has led many countries to seek alternatives to the U.S.-dominated global financial system. Countries like China, Russia, and Iran have begun to create new financial frameworks that allow them to bypass U.S. sanctions. One of the most significant developments in this regard is the growing influence of BRICS, an economic alliance comprising Brazil, Russia, India, China, and South Africa.
These nations have increasingly sought to reduce their dependence on the U.S. dollar, which serves as the global reserve currency. The creation of the BRICS New Development Bank and other financial institutions allows these countries to trade and invest without relying on U.S.-controlled systems like SWIFT. This shift reflects the weakening influence of U.S. economic power, as more countries align with emerging economies like China and Russia.
Former U.S. Treasury Secretary Jack Lew warned as early as 2016 that the overuse of sanctions could lead to “sanctions overreach,” reducing the U.S.’s ability to use them effectively. The continued expansion of sanctions under Trump and Biden has only accelerated the shift towards alternative financial systems. As more countries, particularly in developing countries, seek to escape U.S. economic influence, the future effectiveness of U.S. sanctions becomes increasingly uncertain.
Conclusion: U.S. Sanctions as a Tool of Economic Warfare
U.S. sanctions have become a devastating tool in modern foreign policy, affecting more than one-third of the world’s countries. These sanctions, though intended to target governments and institutions, often harm ordinary civilians by restricting access to basic necessities like food, medicine, and critical technologies. In countries like Venezuela, Cuba, and Syria, U.S. sanctions have contributed to severe economic contractions and widespread death, highlighting the deadly consequences of this policy.
While smaller nations have suffered immensely, larger powers such as Russia and China have begun to resist these measures. The overuse of sanctions has led to the creation of alternative financial systems, reducing U.S. dominance in the global economy. As more countries align with Russia, China, and BRICS, the global divide continues to deepen, signaling the potential decline of U.S. economic supremacy.
