Iran

EU Moves to Block Trump’s Iran Sanctions

Written by SK Ashby

Trump unilaterally withdrew from the Iran nuclear deal and, as of tomorrow, the Trump regime will reimpose economic sanctions to punish Iran for developing a nuclear program that the nuclear deal was successfully prohibiting.

Trump's sanctions could effect European companies that signed business deals with Iranian companies so, to that end, the European Union (EU) is taking steps to protect their companies.

When Trump's reimposes sanctions tomorrow, it will be accompanied by new action from the EU.

As Washington’s so-called “snapback” sanctions are reinstated on Tuesday, a new EU law to shield European companies will also take effect to try to mitigate what EU officials say is their “unlawful” reach beyond U.S. borders. [...]

The new measure forbids EU persons from complying with U.S. sanctions or related court rulings and allows for firms to sue in court to recover potential damages from parties who withdraw from contracts due to U.S. sanctions.

“For those who have exposure, there is no panacea. What this does is it provides a deterrence. It means that sanctions that are discretionary may never be applied,” one senior EU official said, adding that firms have rarely been fined under U.S. secondary sanctions in the past.

Iran's further compliance with the nuclear deal relies on the European Union's ability to preserve business ties with the country so peace in the region may depend very heavily on the outcome of these measures.

It seems unlikely to me that Trump will let this go unanswered, but I don't expect he will unload his childish frustrations on Iran. This could be just the excuse Trump is looking for to ratchet up his rhetoric against trade with the European Union. I would not be the least bit surprised if Trump even uses this as excuse to impose tariffs on foreign cars and car parts.

Trump's informal agreement with European Commission President Jean-Claude Juncker was never going to last.