Sanctions

Top Treasury Official Warns Against Over-Reliance on Sanctions

Though the Obama administration has often resorted to financial sanctions to coerce foreign adversaries into better behavior, a top Treasury official warned Friday that overusing the measures risks damaging the long-term vitality of the U.S. economy and the economies of friendly nations.

“Sanctions are not a silver bullet, or the solution to every foreign policy crisis,” Adam Szubin, the acting undersecretary of Treasury for terrorism and financial intelligence, said in an address at the Center for a New American Security. “Even when sanctions do work, they can come with negative side effects.”

Szubin, who has been deeply involved in U.S. sanctions efforts targeting Iran’s nuclear program and illicit funding for the Islamic State terror network, said many of the downsides of sanctions are obvious: They risk retaliation from foreign governments, they strain diplomatic relations, and they dampen commercial activity.