Donald Trump’s Sanctions on Iran and Trade Relations with China

Since assuming the responsibility of President, Donald Trump has been cynosure thanks to the way he deals with his peers, members Congress, various issues of national and international importance that confronting him in general. It has lead to an unwarranted competition between harmony and hatred. As for foreign countries, the measures taken by Trump recent move to renew US sanctions against Iran is a deft decision is part of his politics.

On the other hand, Trump has become a little lenient on certain countries by allowing them to buy crude petroleum from Iran. The countries that can continue to buy crude petroleum from Iran include China, Japan, Indi, South Korea, Greece, Italy, Turkey and Taiwan. For Iran, crude export is the most important source of foreign exchange equivalent to 33% o government revenue. Iran is primarily dependent on oil exports and is likely to be hit by the sanctions.

Trump scuttled the nuclear deal of 2015 and now he is planning to completely weaken the economy of Iran.

The reason behind the waiver for these countries to buy crude from petroleum is those countries have already reduced their crude imports from Iran during the last six months. And recently the steep rise in price crude is reportedly said to be one of the important reasons behind the relaxation of sanctions

How has Iran been affected?

Oil price in October was more than $ 85. This is purely because of the Trump politics. The fear speculation was that the US President will completely disable Iran's exports leading to dearth oil and therefore the rise in oil price. Tramp's decision on sanctions on Iran is likely to benefit Iraq as a matter of strategic policy. Further neutral countries such as Kuwait and Saudi \Arabia will help out in the situation. The sanctions will continue up to the close of 180 days.

Further, domestic crude production in the United States reached record level (11.3 million barrels). Under the circumstances, the negative impact of the sanctions on Iran may ease. It is important to know that while as part of politics, sanctions on Iran were being anticipated, the large oil-producing counties expanded their output. All this led to lessening the impact of sanctions of Iran on other economies.

Trade relation with China

And, when it comes to dealing with China, Trump plans to reduce the trade deficit with China. Trade deficit indicates that the country is borrowing more than it should lend. The President hoisted a trade war between China and the United States. The US administration charges a total of 25% on Chinese goods in the US. The leadership need to discuss to work out a better deal otherwise, it will be problematic for the United States than China.

China has, for long refused to yield to US politics. China has taken measures without endangering trade between the countries.

However, the President’s admission to trade relationship will not be lenient. The US has to bear costs because of trade with China. However, the benefits of trade with China are far more than the cost. Trump thinks that China is taking advantage of their strong economic position.

Comments

javascript:void(0);

We use browser cookies to give you the best possible experience. To use our site, you must agree to our Privacy Policy, which includes cookie policy.