America’s Use of Coercive Economic Statecraft

Author
Elizabeth Rosenberg, Peter Harrell, Paula J. Dobriansky, Adam Szubin
Content Type
Special Report
Institution
Center for a New American Security
Abstract
U.S. policymakers will continue to intensively use a growing array of coercive economic tools, including tariffs, sanctions, trade controls, and investment restrictions. The growing use reflects a desire by policymakers to use coercive economic tools in support of a growing range of policy objectives. Diplomacy around these tools has long been challenging and can require hard choices. To use these tools effectively, policymakers should focus on articulating clear objectives and measuring effectiveness and costs. U.S.-China competition raises the stakes for getting the use of coercive economic statecraft right. Policymakers in the next presidential administration and Congress would be well-served to spend at least as much effort focusing on the positive tools of statecraft. These include domestic economic renewal, international finance and development incentives, and positive trade measures, among others.
Topic
Development, Diplomacy, Sanctions, Economy
Political Geography
China, Asia, North America, United States of America