In early May President Donald Trump announced the U.S. was withdrawing from the Iran deal. Among other things, this means the re-imposition of sanctions—the “highest level” of sanctions, as he put it, which he said would be “crippling.” Those sanctions include efforts to block Iranian oil sales, limits on Iran’s ability to access international banking systems, and measures to prevent Iran from trading with other countries.
That last provision would “have a swift effect on some big companies,” Fortune reported. Among them: Boeing and Airbus, which “had been planning to start selling aircraft to the Islamic Republic for the first time.” General Electric also will be hit hard: “Not only is it one of the U.S. companies making parts for Airbus, but it has also received big parts orders for oil and gas facilities in Iran.” Volkswagen had started selling cars in Iran, and might have to stop. Ditto for the French company that makes Peugeots.
Reimposing sanctions, as Trump wants to do—including sanctions that limit imports—therefore will hurt Iran’s economy and put pressure on the company’s leaders to change their ways.
But that is the precise opposite of what Trump says about the United States. When it comes to America, the president claims limiting imports will help the country. A. Barton Hinkle explains why this makes no sense.
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