From Tehran to TikTok: How Presidents Have Used IEEPA to Shape the World

In the last post, we looked at how the International Emergency Economic Powers Act (IEEPA) was created in 1977 to give presidents limited powers to deal with real foreign threats — not to wage economic war whenever they felt like it.

So how has that worked out?

Well… over the past 40+ years, presidents have used IEEPA a lot — often for good reasons, sometimes in surprising ways, and occasionally in ways that stretch the law’s original intent.

Let’s walk through the major moments that shaped how IEEPA is used today.

1979: Hostages in Iran — IEEPA’s First Test

The first use of IEEPA came fast. In 1979, militants in Iran stormed the U.S. Embassy in Tehran and took 52 Americans hostage. President Jimmy Carter needed a fast, peaceful way to pressure Iran.

He turned to IEEPA.

Carter used it to freeze all Iranian government assets in the U.S. — over $12 billion. It was the first economic punch thrown with IEEPA, and it worked: the asset freeze helped bring Iran to the negotiating table.

Believe it or not, that national emergency is still in effect today, over 40 years later.

The 1980s: Cold War Conflicts and Sanctions

Presidents Reagan and George H.W. Bush used IEEPA in Cold War hotspots:

• Libya (1986): After a terror attack in Berlin, Reagan froze Libyan assets and banned trade.

• Nicaragua (1985): Sanctions were placed on the Sandinista government to weaken their grip on power.

• Iraq (1990): When Saddam Hussein invaded Kuwait, President Bush used IEEPA to freeze Iraqi assets and ban trade.

IEEPA had become the go-to tool for punishing hostile regimes — without sending in troops.

The 1990s: New Targets — Terrorists and Drug Lords

President Bill Clinton took things a step further.

He used IEEPA not just against countries, but against individuals and non-government groups:

• 1995: Sanctions on Hamas and Hezbollah for terrorism.

• 1998: Sanctions on Osama bin Laden and al-Qaeda.

• 1995–1999: IEEPA used to freeze the assets of Colombian drug cartels.

This was a turning point: now, presidents could target people—not just governments.

Post-9/11: The War on Terror Supercharges IEEPA

After the attacks on September 11, 2001, President George W. Bush used IEEPA to go after terrorist financing networks worldwide.

Within days, he signed Executive Order 13224, freezing the assets of anyone linked to terrorism.

Congress also gave him more power by allowing the government to not just freeze, but confiscate assets of anyone involved in an attack on the U.S.

IEEPA was now a front-line weapon in the Global War on Terror.

2010s: Cyber Threats, Human Rights, and Russia

President Obama expanded IEEPA’s use to:

• Human rights abusers (through the Magnitsky Act)

• Cybercriminals and hackers (like North Korean and Chinese cyber ops)

• Russia (after the 2014 invasion of Crimea)

These sanctions froze assets, banned travel, and cut off financial access. They were powerful — and coordinated with U.S. allies.

Trump’s First Term: New Uses, Big Controversies

President Trump used IEEPA aggressively — and sometimes in legally questionable ways.

• Venezuela: He imposed broad sanctions on Nicolás Maduro’s regime.

• China: He targeted Huawei and tried to ban TikTok and WeChat, citing national security.

• ICC (International Criminal Court): In 2020, Trump used IEEPA to sanction officials at the ICC — the first time U.S. sanctions were used against an international court.

Some of these moves were blocked in court. Judges said banning TikTok might violate IEEPA’s free speech protections, which prevent the government from restricting personal communications or information sharing.

Still, Trump pushed the boundaries of what IEEPA could be used for — and set the stage for even more controversial actions in his second term.

What We’ve Learned So Far

Since 1979, IEEPA has been used by every president to:

• Freeze assets

• Cut off trade

• Target terrorists, cyber criminals, and human rights violators

• Punish governments and individuals — sometimes in creative ways

It’s become one of the most powerful tools in the president’s toolbox.

But with great power comes… well, you know the rest.

Next Time: How Trump Is Using IEEPA in 2025

In the final post in this series, we’ll look at how Trump is using IEEPA right now — not just for sanctions, but for something that’s never been done before:

Imposing global tariffs using emergency powers.

We’ll break down what it means, why it’s controversial, and how it could reshape U.S. economic policy.

What Is IEEPA? The 1977 Law Behind U.S. Sanctions

IEEPA: Born from Crisis — Why the U.S. Needed a New Emergency Law in 1977

Ever wonder how U.S. presidents can suddenly freeze a foreign country’s bank accounts, ban certain imports, or slap sanctions on international criminals — all without waiting for Congress? That’s thanks to a law most Americans have never heard of: the International Emergency Economic Powers Act, or IEEPA.

Today, it’s the backbone of U.S. sanctions. But when it was passed in 1977, it was actually meant to rein in presidential power — not expand it.

Let’s go back to where it all started.

The Problem: Presidents Had Too Much Power

For decades, U.S. presidents had been using a World War I-era law called the Trading with the Enemy Act (TWEA) to deal with all sorts of situations — even ones that had nothing to do with war or enemies.

Here’s the wild part:

From 1933 to 1976, the U.S. was technically under a continuous national emergency. That meant the president could control international trade, freeze assets, and block financial transactions — with almost no checks from Congress.

At one point, President Nixon even used this power during a postal workers’ strike. That had nothing to do with foreign threats — and people in both parties started asking:

“Is this really how we want emergency powers to work?”

Congress Steps In: The National Emergencies Act

After years of concern about unchecked executive power — especially during the Vietnam War and Watergate — Congress passed the National Emergencies Act (NEA) in 1976.

The NEA required:

• Presidents to formally declare emergencies

• Emergencies to be reviewed annually

• Reports to Congress so lawmakers could keep tabs

It was a big step toward restoring the balance of power between the executive branch and Congress.

Then Came IEEPA

But Congress still needed a law to let the president respond quickly to real foreign threats — just without the loopholes and lack of oversight that came with TWEA.

So, in 1977, Congress passed the International Emergency Economic Powers Act (IEEPA).

IEEPA was supposed to be:

• A narrower, more focused tool

• Only usable in true national emergencies

• Limited to threats that come from outside the U.S.

• Bound by rules that protect free speech and personal communication

In short, it was meant to give the president power with limits.

The Big Idea: National Security, Not Political Power

Congress didn’t want presidents using emergency powers for everyday policy fights or domestic issues.

IEEPA was supposed to be reserved for “unusual and extraordinary threats” — things like terrorism, foreign wars, cyberattacks, or weapons trafficking.

It was about protecting the country, not helping presidents win trade disputes or punish political opponents.

But as we’ll see in the next post, that original intention hasn’t always held up.

Up Next: How Presidents Have Actually Used IEEPA

From the Iran hostage crisis to sanctions on TikTok, IEEPA has been used to freeze billions in assets, isolate hostile regimes, and go after terrorists, hackers, and even app developers.

In the next couple of posts, we’ll show how the National Emergencies Act (NEA) interacts with IEEPA, and we’ll explore how IEEPA evolved from a little-known reform law into one of the most powerful tools in the presidential toolbox.

Echoes of Tyranny: Then and Now

In 1776, the American colonies declared independence from King George III, accusing him of abusing power and ignoring their rights. The Declaration of Independence wasn’t just a breakup letter—it was a list of grievances, a warning about what happens when a leader puts himself above the law, silences critics, and treats democracy like a game.

Nearly 250 years later, many of those same complaints feel eerily familiar.

This post doesn’t name names, but it does invite you to think deeply. What happens when leaders today echo the very behaviors our country was founded to resist?

Let’s look at some of those original complaints and how similar issues have surfaced in recent years.

Blocking Good Laws

Then: “He has refused his Assent to Laws, the most wholesome and necessary for the public good.”

Now: Some leaders have ignored or tried to overturn laws meant to protect the environment, health care, or civil rights—laws passed by Congress and supported by the public.

Undermining Justice

Then: “He has obstructed the Administration of Justice…”

Now: Attempts to stop investigations, fire prosecutors, or publicly attack judges have raised real questions about respect for the rule of law.

Controlling the Courts

Then: “He has made Judges dependent on his Will alone…”

Now: When leaders pressure judges, question their legitimacy, or appoint loyalists over qualified professionals, the courts can’t do their job fairly.

Using the Military Against the People

Then: “He has rendered the Military independent of and superior to the Civil power.”

Now: Threatening to use the military against peaceful protesters or to hold on to power undermines the idea that the military serves the people—not the president.

Undermining the Constitution

Then: “He has combined with others to subject us to a jurisdiction foreign to our constitution…”

Now: Cozying up to authoritarian leaders or bending constitutional norms for personal gain is the opposite of what democracy stands for.

Disrupting Trade

Then: “For cutting off our Trade with all parts of the world…”

Now: Trade wars, tariff chaos, and sudden policy changes have hurt farmers, small businesses, and international partnerships.

Denying Fair Trials

Then: “For depriving us in many cases, of the benefits of Trial by Jury…”

Now: From immigration detention without due process to talk of targeting political opponents, justice systems have been threatened or ignored.

Fueling Violence at Home

Then: “He has excited domestic insurrections amongst us…”

Now: When leaders spread lies, encourage mob behavior, or stay silent in the face of violence, they don’t just stoke division—they put the country at risk.

Why It Matters

These comparisons aren’t about left or right. They’re about democracy—or the loss of it. The Founders weren’t perfect, but they gave us a warning: watch for the signs of tyranny, even if it comes wrapped in a flag or holding a Bible.

History doesn’t repeat, but it often rhymes. When the same kinds of abuses show up in new clothes, it’s up to us to recognize them—and speak out.

Read: The Declaration of Independence