Monday, August 6, 2018

Trump Restores Iran Sanctions Includes Ban on Persian Rugs and Pistachios

The Trump administration moved to restore some U.S. sanctions on Iran and reaffirmed plans to impose tougher penalties on the country’s oil sales in November.

President Donald Trump signed an executive order restricting purchases of dollar banknotes by Iran, preventing the government from trading gold and other precious metals and blocking the nation from selling or acquiring various industrial metals. The measures, which take effect Aug. 7, also target the auto industry, and will ban imports of Persian carpets and pistachios to the U.S.

Foreign Policy magazine even recognized the problems with sanctions during the Obama administration:
From Iran to Russia, Africa, and North Korea, the Obama administration has long relied on financial sanctions as a preferred weapon against U.S. adversaries. But over the past year, it’s America’s allies that are increasingly feeling the pinch, leading Washington to wonder whether its favorite economic power tool has been so overused it’s becoming ineffective and, in some cases, even counterproductive.

The U.S. financial system is the engine of all global trade. Sanctions that are prohibitive or otherwise too restrictive to foster trade risks driving business to foreign markets — and, in doing so, broker new alliances between longtime American friends and foes.
-RW  

(via Bloomberg)