A bold move (to be euphemistic) by U.S. president Donald Trump is about to have dramatic effects on the global economy, particularly in France.
Trump has had it out for Iran since he decided to nix a 2015 nuclear deal with the Middle East nation back in May. The deal had lessened sanctions on Iran from China, France, Russia, the UK, the US, and Germany, in exchange for nuclear de-escalation. Essentially, Trump wasn’t satisfied with the extent of the deal (which only restricted nuclear capabilities through 2030), and he chose to throw the baby out with the bathwater rather than settle for incremental progress.
This week, Trump chose to further unsettle diplomatic relations by installing harsh new sanctions on Iran, putting US Allies in jeopardy. In countries like France, companies are feeling strong-armed into ceasing their business with Iran or else potentially losing U.S. business. Meanwhile, the European Union has updated a “blocking statute” that would penalize nations for not doing business in Iran in order to counter the U.S.’s decision. This leaves many enterprises, like French cosmetics company Pier Augé, in the difficult position of angering either the U.S. or the EU. Watch this video to see just how French companies are choosing to handle this challenge.