1. NS3040 Misuse of Sanctions Fall Term, 2018
CFR, The US Trade Deficit: How Much Does it Matter?

2. Overview
“Trump and the Misuse of US Sanctions”, Financial Times, August 14, 2018
Announcement that US doubling US tariffs on Turkish steel and aluminum as currency was falling vis a vie U.S. dollar
Normally time when U.S. Treasury would be trying to calm markets, rather than further destabilizing them
Sanctions imposed on an extremely narrow problem -- detention of a U.S. pastor. The sanctions
Have triggered one of most serious rifts of recent years with a U.S. NATO ally.
Threatened to undermine America’s own interests and those of key allies

3. Sanction Problems I
Sanctions can play a useful role in modern diplomacy
Exerting pressure while stopping short of armed force
To be effective sanctions have to be employed judiciously with clear goals and in close co-ordination with allies
Trump administration has been deploying them unilaterally as in the case of Iran short circuiting more painstaking diplomatic strategies
Lack of care in imposing sanctions risks destabilizing markets unpredictable consequences for broader global economy

4. Sanction Problems II
Turkey not just a NATO ally vital to US interests in the Middle East
Its financial crisis may spread to
European banks and
Other emerging markets
U.S. punishment can drive allies to rival powers seeking to challenge US dominance – Russia and China
Russia trying to take advantage of Turkey situation
Conceivable China may do the same

5. Sanction Problems III
Even most carefully calibrated and worthwhile sanctions such as against Russia in 2017 – Crimea – risk other countries attempting to decouple from the dollar and US-dominated financial networks