Economic Statecraft and Power Projection: Sanctions and Tariffs in the Reconfiguration of US Grand Strategy

This paper analyzes the increase in the use of economic statecraft – specifically the use of sanctions and tariffs – as the United States rethinks its grand strategy in the first two decades of the twenty-first century. Given increased rivalry among nations and growing levels of economic interdependence, the United States has turned to economic measures as a way to project power and to address threats to its national security without the need for military intervention. Using detailed analyses of U.S. sanctions on Iran and Russia, and tariff escalations against China, this study provides a critical evaluation of the strategic rationale, operational mechanisms, and limitations of economic coercion. This study shows that although economic statecraft is a strong tool used by the United States to influence adversaries, to negotiate diplomatically, and to demonstrate resolve to others, there are several constraints that limit its effectiveness including the potential for retaliation by targeted states; the potential for fragmentation among coalitions that support economic statecraft; and humanitarian consequences that occur as a result of economic statecraft. Overall, this study argues that economic statecraft should be incorporated into a more comprehensive framework of grand strategy that incorporates elements of coercion with diplomacy and cooperation among international organizations. This paper will contribute to the broader discussion about power projection in a multipolar world by providing policymakers with insight into the challenges associated with using economic instruments in the pursuit of national security and global order.