AC

Trump is expected to announce he will allow sanctions to go forward on Iran … CNN May 08, 2018 at 04:20PM

gbp-eur

Trump is expected to announce he will allow sanctions to go forward on Iran … CNN

 

Trump is expected to announce he will allow sanctions to go forward on Iran

By Kevin Liptak

Washington (CNN)President Donald Trump is expected to announce on Tuesday he will allow sanctions to go forward on Iran, a first step toward withdrawing from the touchstone nuclear agreement negotiated by his predecessor, according to a
US official and a person familiar with the plan.

However, the sanctions could take months to go into effect as the US government develops guidance for companies and banks. The officials cautioned nothing is final until Trump makes his announcement from the Diplomatic
Room of the White House at 2 p.m. ET, and held out the possibility that he could change course.

Long a harsh critic of the nuclear accord, Trump has so far resisted taking steps to fully quit the plan. His announcement Tuesday to allow sanctions to go ahead would amount to the firmest step yet toward fulfilling
his campaign promise to rip it up. But he’s expected to still allow for a grace period that may offer the deal’s proponents an opening to negotiate.

Trump was keeping his decision closely held. Marc Short, the President’s legislative director, said lawmakers would be notified later Tuesday afternoon. Trump planned to speak with foreign counterparts on Tuesday
morning. He spoke early in the day with Chinese President Xi Jinping and phoned French President Emmanuel Macron mid-morning.

Macron was one of several European leaders who had lobbied Trump to remain in the deal, arguing it remains the best way to curtail Iran’s nuclear ambitions. Both Macron and German Chancellor Angela Merkel flew
to Washington to make their appeals in person.

Trump told them the deal failed to address Iran’s ballistic missile program or its support of terror in the Middle East. They appeared receptive and began negotiations on a separate deal that would address his
concerns. But European diplomats expressed only pessimism that their efforts would be successful.

“It’s pretty obvious to me that unless something changes in the next few days, I believe the President will not waive the sanctions,” one European diplomat told reporters on Monday.

The sanctions Trump is expected to allow to move forward target Iran’s oil exports. For now he’s not expected to impose additional sanctions.

The decision would strike a blow to the nuclear deal, but it’s not clear it would cause the entire agreement to collapse. The other signatories to the plan, including Germany, France and the UK, have said they
will maintain their commitments.

But new US sanctions would undoubtedly cause companies to reconsider investments in Iran and European firms may have no choice but to scale back or risk running afoul of US rules.

The grace period could allow for further negotiations between US allies on a side agreement that addresses Trump’s concerns about the missile program and Tehran’s support for terror groups. But even if a deal
is struck, it’s not clear how they would convince Iran to sign on, or whether Russia and China — two other partners to the deal — would agree.

 

 

Read More: Trump is expected to announce he will allow sanctions to go forward on Iran … CNN

gbpusd gbp-usd

Advertisements

Categories: AC, FC, SGM

Tagged as: ,