Legal Definitions - trading with the enemy

The term "trading with the enemy" refers to the federal crime of engaging in any form of business, trade, or financial transaction with a country that the United States is officially at war with. This prohibition also extends to dealing with any person, organization, or entity associated with that enemy nation or its allies. The purpose of this law is to prevent resources, funds, or any form of support from inadvertently or intentionally reaching an adversary during a time of armed conflict, thereby undermining U.S. national security efforts.

Here are some examples to illustrate this legal concept:

• Example 1: Corporate Sales to an Enemy Nation
  Imagine a scenario where the United States has officially declared war on Country X. Despite this declaration, a U.S.-based manufacturing company continues to fulfill existing contracts to sell specialized industrial machinery to a factory located within Country X. The U.S. company processes payments through a third-country intermediary to try and obscure the transaction.

  This illustrates "trading with the enemy" because the U.S. company is "carrying on commerce" (selling goods) with an entity (the factory) that is a "subject" of a "nation with which the United States is at war." The use of an intermediary does not negate the offense.

• Example 2: Individual Financial Transfers
  Consider a U.S. citizen who has a close relative living in Country Y, an ally of Country X (the nation with which the U.S. is at war). During the conflict, the U.S. citizen regularly sends substantial sums of money to their relative in Country Y, knowing that these funds could indirectly support the economy of an allied enemy nation or be diverted to support the war effort.

  This demonstrates "trading with the enemy" because the U.S. citizen is engaging in "commerce" (financial transactions) with a "subject or ally of a nation" (the relative in Country Y, an ally of the enemy) "with which the United States is at war."

• Example 3: Shipping and Logistics Services
  A U.S.-registered shipping company, aware of a declared war between the U.S. and Country Z, accepts a contract to transport a large cargo of non-humanitarian goods, such as raw materials for manufacturing, directly to a port controlled by Country Z's government. The company's vessels enter Country Z's territorial waters to complete the delivery.

  This is an instance of "trading with the enemy" because the U.S. shipping company is "carrying on commerce" (providing transportation services) directly with an "enemy nation" (Country Z) during a state of war.