President Trump’s decision to scrap a deal that gave Iran access to U.S. trade in exchange for restrictions on its nuclear capabilities will cut off a market that generated $7.2 million of sales for General Electric at the start of 2018.
The Boston-based company joins an array of businesses affected by Trump’s decision, which was broadly condemned by European allies and includes the reinstatement of U.S. sanctions suspended under the Obama-era agreement, known formally as the Joint Comprehensive Plan of Action. Licenses that allowed U.S. firms to do business in Iran will be revoked, subject to three- and six-month wind-down periods.
[European diplomat: ‘Pretty obvious’ Trump plans to nix Iran deal]
“We are reviewing the president’s decision and will adapt our activities as necessary to conform with these changes in U.S. law,” a spokesperson for the Boston-based company said. “GE’s activities in Iran to date have been limited and in compliance with U.S. government rules, licenses and policies.”
In addition to equipment sales by GE affiliates outside the U.S., regulatory filings show the company won $1.49 million in purchase orders from Iran in the three months through March 31, a fraction of its total of $13 billion in equipment orders. Trade allowed under the license that GE used won’t be allowed after early November, the Treasury Department said.
The fallout is considerably more severe for other U.S. manufacturers. Chicago-based planemaker Boeing had won orders valued at roughly $20 billion, though none of the aircraft had been delivered.
[FULL REMARKS: Trump’s announcement withdrawing from the Iran nuclear deal]
