On September 10, 2018, the Trump administration issued a formal determination (2018-20014) continuing the exercise of authorities granted under the Trading With the Enemy Act, a Depression-era statute that grants the executive branch broad powers to restrict financial transactions and trade during periods of national emergency. By invoking this mechanism, the administration renewed existing prohibitions on American citizens and businesses conducting transactions with designated foreign nationals and entities, effectively preserving a legal framework that had already been in place through prior executive actions.
The immediate effect of this determination falls primarily on American financial institutions, import-export businesses, and individual citizens attempting to conduct lawful commerce with restricted countries and their nationals. Specifically, banks must monitor and block transactions involving sanctioned entities, while companies engaged in international trade face compliance burdens and potential criminal liability for violations. Individual Americans traveling or doing business abroad must navigate complex restrictions on which parties they can transact with, creating practical barriers that extend beyond government operations into everyday commercial life.
This action exemplifies a pattern of executive branch expansion of foreign policy authorities that accelerated throughout the Trump administration's tenure. The continuation of Trading With the Enemy Act authorities provided legal scaffolding for the later Iran-related actions documented in the administration's record, including the March 2026 continuation of national emergency declarations regarding Iran and the April 2026 troop deployments to enforce maritime blockades. These successive determinations and emergency declarations create a layered system of executive control over foreign commerce and military posture, each one building upon and reinforcing the last.
The Trading With the Enemy Act itself dates to 1917 and has weathered constitutional scrutiny, though its application during peacetime has faced periodic legal challenges regarding due process and commerce clause limitations. The September 2018 determination encountered no immediate congressional blockade, though the underlying statute reserves certain theoretical oversight powers to Congress. A reversal of this determination would require either an affirmative executive decision to discontinue it or congressional action to restrict or repeal the underlying statutory authorities themselves.
Continuation of Trading With the Enemy Act Authorities
🌐 Foreign Policy · First Term (2017–2021) · 🤖 AI-categorized
On September 10, 2018, the Trump administration issued a determination (2018-20014) continuing the exercise of certain authorities under the Trading With the Enemy Act. This action maintains existing restrictions on financial transactions and trade with designated countries and entities. The direct effect is the continuation of existing trade prohibitions and financial controls affecting American businesses and individuals conducting transactions with specified foreign nationals and entities.