The United States increasingly relies on sanctions, tariffs and technology controls to pressure adversaries — while using many of the same tools against longtime allies.
In his book, “Chokepoints: American Power in the Age of Economic Warfare,” Edward Fishman argues that Washington has weaponized its commanding position in the global economy. Because international commerce depends heavily on the dollar, American banks and U.S.-designed technology, the government can restrict transactions and supplies without deploying troops.
Against Iran, Washington has blocked oil revenue, frozen assets and threatened foreign institutions that do business with sanctioned entities. The Treasury Department says its latest campaign is intended to disrupt networks supporting Iran’s military and weapons programs.
Russia faces extensive restrictions on banks, energy companies, ships and access to Western technology following its invasion of Ukraine. The measures have raised Moscow’s costs, but they have not forced President Vladimir Putin to end the war. Russia has instead expanded trade with China and developed methods of evading sanctions.
Washington’s campaign against China centers on tariffs and restrictions on advanced semiconductors and manufacturing equipment. U.S. officials argue the controls are necessary to prevent American technology from strengthening China’s military. Beijing calls them an effort to contain China’s development and has retaliated with its own trade restrictions.
Fishman warns that President Donald Trump has also wielded economic pressure against Canada, Mexico and Europe. Tariffs on steel, aluminum and other imports. Also threats of broader penalties are being used to extract trade concessions from countries traditionally considered partners.
The administration says tariffs protect American industries, combat unfair trade and reduce dependence on foreign suppliers. Critics describe the policy as economic bullying that increases costs for American consumers and alienates countries needed to make sanctions effective.
Fishman argues America’s economic weapons are most powerful when used with allies. Using them indiscriminately could encourage countries to bypass the dollar, build alternative supply chains and weaken the very “chokepoints” that give Washington its leverage.
American economic warfare has significant limits. Sanctions can damage an economy, restrict access to technology and raise the cost of financing a war, but they rarely force a determined government to surrender its central political or security objectives.
Russia has redirected oil exports and expanded trade with China and India. Iran has developed covert shipping and financial networks, while China has invested heavily in domestic technology and controls its own economic chokepoints, including supplies of critical minerals.
Sanctions also become less effective when they are not enforced by a broad coalition.
There is also a danger that economic pressure can produce the opposite of its intended result. Countries targeted by Washington have a powerful incentive to stockpile gold, trade in their own currencies and develop payment systems that do not pass through American banks.
Russia and China have already expanded trade in rubles and renminbi, while governments are exploring digital currencies and alternative financial networks. These arrangements remain smaller and less efficient than the dollar system, but they can provide sanctioned countries with financial escape routes.
The freezing of Russia’s central-bank reserves after its 2022 invasion of Ukraine was particularly consequential. Supporters said the extraordinary action was justified by Russia’s aggression. But it also demonstrated that foreign reserves held in dollars, euros and other Western currencies could be immobilized during a geopolitical confrontation.
Governments are now recognizing that future dispute with Washington could result in assets held in U.S. banks being seized and this is a national-security vulnerability.
Fishman points out that American economic power depends on other countries continuing to use systems that the United States can control. Economic weapons that appear overwhelmingly powerful today could become less effective each time they are used. Therefore, they should be used sparingly.
Guest:
Edward Fishman is the author of
Chokepoints: American Power in the Age of Economic Warfare.
He is an author, international relations scholar, and former diplomat who is Senior Fellow and Director of the Maurice R. Greenberg Center for Geoeconomics at the Council on Foreign Relations. He is also an Adjunct Professor of International and Public Affairs at Columbia University.
"The Source" is a live call-in program airing Mondays through Thursdays from 12-1 p.m.
Leave a message before the program at (210) 615-8982. During the live show, call 833-877-8255 or email thesource@tpr.org.
This interview will be recorded live on Thursday August 27, 2026, at 12:00 p.m.
