Governments Pushed Too Far To Accept U.S. Decisions, May Seek To Undermine Permanently U.S. Decisions

The United States has during the last nine years increased the use of sanctions, specifically sanctions upon non-United States-based financial institutions and non-United States-based companies to seek behavioral change from state and non-state actors.  Many governments believe such sanctions to be extraterritorial and, thus a violation of sovereignty.   

During the Trump Administration, the use of tariffs, as well as sanctions, as tools of coercion have been commonplace.  

From 20 January 2017 through 27 December 2019, the United States Department of the Treasury has issued 2,826 sanctions targeting individuals, entities, vessels, and aircraft. 

Some of the countries impacted by United States sanctions include United Kingdom, Canada, France, Germany, Spain, Ireland, Russia, Turkey, Venezuela, Cuba, China, North Korea, Japan and South Korea.  

When governments, friend, ally, foe believe decisions by the United States while inarticulate do for them contain a foundational albeit perhaps long-term benefit, the governments will grudgingly “go along” with the United States either publicly or privately.  

However, when governments (and international institutions United Nations, European Union and NATO) believe their interests will not align with those of the United States- and, significantly, the United States disregards third-party impact and will likely continue to use sanctions in spite of pleadings otherwise, there will be manifest efforts, proactive efforts to contain the United States.  

These proactive efforts for containment of the United States can have lasting impact- diminishing the importance, relevance of the United States- lessening the use of the United States Dollar for global transactions; lessening the belief that it should be the world’s reserve currency.  

While the interests of Russia (Ruble) and China (RMB) and EU (Euro) are distinct, watch in 2020 for continuing efforts to reduce the use of the United States Dollar as a global trade pricing point unless the United States creates more robust by-in from other governments.