Our piece on the strategic logic of weaponized interdependence has just appeared on Lawfare.
“Last month, Ellie Geranmayeh and Manuel Lafont Rapnouil wrote a report for the European Council on Foreign Relations, arguing that Europe needed to hit back hard against U.S. secondary sanctions targeting Iran. They recommended that Europe consider measures such as creating new financial channels outside U.S. control, investigating European companies that comply too readily with U.S. threats and targeting U.S. companies in retaliation for sweeping U.S. measures against European firms.
As the international nuclear deal with Iran known as the Joint Comprehensive Plan of Action (JCPOA) unravels, Europeans feel the bite of U.S. secondary sanctions and economic coercion, and many have come to believe that Europe needs to build up its own coercive tools to pursue its strategic goals and deter U.S. overreach. China and Russia too are starting to think more systematically about how they can use economic coercion and prevent others from coercing them. As allies, rivals and adversaries strengthen and employ their capacity for economic coercion, the U.S. is likely to retaliate in turn, generating new power dynamics.
National security and economic policy used to be separate spheres. They are now merging, turning the global networked economy into a space of strategic actions, counteractions, threats, targeting, countertargeting and decoupling.”