Finance & Fury Podcast

Welcome to 'Say What Wednesdays' - Where we answer your finance questions. Today's question is from Rhys: “I’ve been seeing stories on the news about Trump putting tariffs on China and sanctions on Russia. What is the benefit for the US to do this?” Thanks Rhys Economic sanctions Economic sanctions are penalties applied by one or more countries against a targeted country Examples - trade barriers, tariffs, and restrictions on financial transactions Economic sanctions are used as a tool of foreign policy by governments. imposed by a larger country upon a smaller country for the latter is a threat to the security of the former nation or that country treats its citizens unfairly. They can be used as a coercive measure for achieving particular policy goals, e.g stopping Illegal trade or for humanitarian violations. Economic sanctions are used as an alternative weapon instead of going to war to achieve desired outcomes. Effectiveness of economic sanctions Studies Haufbauer - 34% of the cases were ‘suc