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.