US sanctions should stop hurting American business

The next US administration, whether led by Kamala Harris or Donald Trump, will need to make many tough decisions to ensure sustainable and robust economic growth.

In particular, the next US president will need to make modifications to the prevailing sanctions regime – pursued in earnest by the outgoing Biden administration – in ways that put economics ahead of politics.

America’s economy is suffering from politically motivated sanctions devised to hurt foreign adversaries that are arguably doing just as much, and in certain instances, more damage to US business interests.

The escalating confrontation with China, for example, has seen US tariffs on aluminum and steel triple, stoking inflation and creating headaches for American manufacturers sourcing inputs from Chinese suppliers.

Punitive US sanctions imposed on Russian companies in response to the Ukraine war have proven largely ineffective in regard to the economic damage US policymakers apparently believed they would exact.

Indeed, the measures have often boomeranged and severely hurt American companies instead—not to mention accelerating the de-dollarization of the global economy as Washington weaponizes the buck as yet another type of sanction.

Two American companies’ cases— International Paper Company and Arconic Corporation—stand out as cautionary tales.

International Paper Co, a leading US manufacturer of packaging products and cellulose fibers, had to discontinue its operations and sell its ownership interest in Russia after the US government imposed sanctions prohibiting American business activities there.

In turn, International Paper Co permanently closed its three businesses in Orange, Texas; Riegelwood, North Carolina; and Pensacola, Florida at the end of