Trade Embargoes
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Trade Embargoes
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Emily Sophie Knapp
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iMinds
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Learn about trade embargoes with iMinds Money's insightful fast knowledge series. Trade embargoes are a form of economic sanction that can be used against another nation.
A trade embargo restricts trade with a nation. This may involve banning the import and export of only a few goods, such as armaments, or may encompass a wider range of goods. Embargoes are usually employed to apply pressure to a nation that has or will engage in actions undesirable to the body applying the sanction. Simply put, they are an economic means of applying political pressure. They are a common method for forwarding foreign policy and for enforcing international law. When applied as such, they are often the first sanction applied against an offending nation where subsequent sanctions may lead towards physical conflict.
Embargoes and other economic sanctions have been used throughout history to varying degrees. During the Napoleonic Wars of the early 19th century, France embargoed most European trade with Britain. During this time, America also embargoed trade with both England and France after these nations attempted to prevent America's trade with the other. The American Embargo Act of 1807, however, was more damaging to America's own economy. It was lifted and eventually replaced with a trade embargo on England alone. This precipitated the War of 1812 between America and England.
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