What are 'Trade Sanctions'?

A trade sanction is a trade penalty imposed by one or more nation onto one or more other nations. They are often harmful to common citizens. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Trade Sanctions Trade sanctions are a subcategory of economic sanctions, which are commercial and financial penalties imposed by one or more countries, and targeted against a country, organization, group, or individual. Read More » Related to "Trade Sanctions" How Economic Sanctions Work A country has a number of different types of sanctions at its disposal. Read More » A Brief History of International Trade Agreements Since the mercantilist era, world trade has become increasingly multilateral, but since World War II there has been a definite rise in regional trade agreements. Read More » Which Countries Have the Highest Tariffs? Find out which countries have the most restrictive import tariffs on international products, based on data collected by the World Bank and WTO. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Related Definitions Quota A quota is a government-imposed trade restriction limiting the number or value of goods a country can import or export during a particular period. Read More » Tariff A tariff is a tax imposed by one country on the goods and services imported from another country. Read More » Protectionism Protectionism refers to government policies that restrict international trade to help domestic industries. Read More » Embargo An embargo is a government order that restricts commerce or exchange with a specified country, usually as a result of political or economic problems. Read More » CONNECT WITH INVESTOPEDIA Email sent to: geezers.mail@gmail.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy