In a significant escalation of trade restrictions, the United States is poised to implement a comprehensive embargo targeting what it terms the modern axis of evil, primarily focusing on Russia and Belarus. The Bureau of Industry and Security at the U.S. Department of Commerce is spearheading this initiative, further intensifying the existing sanctions regime.
Under the revised framework of the Export Administration Regulations (EAR), a suite of new export restrictions is set to take effect, targeting not only Russia and Belarus but also extending to Iran. These measures are part of a coordinated effort to harmonize U.S. sanctions with those of its global allies and partners.
The scope of these expanded sanctions is vast, covering a wide array of goods:
All products manufactured within the United States encompass items within its foreign trade zones or those transiting through the U.S. from one foreign destination to another.
Goods of U.S. origin are subject to these restrictions, regardless of location.
The sanctions also extend to foreign-made goods that incorporate U.S.-origin-controlled items. This includes goods ‘bundled’ with U.S.-origin controlled software and foreign-made software and technology that integrate controlled U.S.-origin software and technology.
Additionally, certain foreign-produced items developed with or containing U.S.-origin encryption technologies, which were previously exported under the License Exception ENC, are now included under these sanctions.
This development marks a significant tightening of U.S. trade policy, reflecting a strategic shift in its approach to dealing with perceived global threats and aligning its actions closely with international partners.
