Countries and international organizations now find sanction as the most popular way of responding to global political challenges without involving military action. This paper will discuss the relationship between sanctions and international trade as well as their influence on global governance. It describes various forms of sanctions including unilateral, multilateral, targeted, and comprehensive sanction. Moreover, it provides the way the measures affect trade by banning imports and exports, financial restrictions, and restrictions to technologies transfer. The other important issue that the paper ought to address is in relation to the fact that the growing practice of unilateral sanctions, particularly by dominant nations proves to be the concern in terms of fairness and legal clarity. These may undermine the position of the multilateral institutions like the UN and WTO, and jeopardize world trade. The situation of overlapping legislations and inconsistent regulations tends to confuse countries and companies. The paper ends with the need to make reforms in enhancing legal clarity and accountability of the sanctions. It expresses more transparent international regulations, tighter international supervision, and enhanced humanitarian protection. Seeing that sanctions as a tool that surrounds the world trade structure will keep on shaping the shape of this structure, it is valuable to not only comprehend how sanctions have influence in legal and political terms but also how it maintains the world order to be stable and fair.