Last May, Germany criticised the withdrawal of Donald Trump from the Iran nuclear deal. It also promised to help the companies to continue to do business with the nation even though the President of the United States said in a tweet that “anyone doing business with Iran will NOT be doing business with the United States.”
However, it seems like the largest economy of the eurozone has yielded to the threats of Donald Trump after Deutsche Bahn, a German state-owned rail operator, and Deutsche Telekom confirmed that they are are terminating projects in Iran. The confirmation comes after Daimler, a German carmaker, also halted all activities in the country.
It is may not be surprising that Germany has been rolling back the country’s dealings with Iran following an assessment of the numbers. While 10,000 German firms trade with Iran and approximately 120 German companies operate and have employees of their own in Iran, including Siemens, this is considered as a pocket shift for the economy as compared with the dealings that it has with the United States.
While the exports of Germany to Iran was able to hit $3.42 billion last year, this is only worth 0.2 percent of the total exports of the country. The numbers are reasonably not enough to risk creating further conflicts by triggering the US President to double down on his protectionist trade measures.
After all, Germany is considered the largest trading partner of the United States in the European Union. It accounted for 30 percent of the total exports of the bloc of $127 billion in 2017. Germany also imported $52 billion worth of goods from the US last year.
France, the ally of Germany, also appears to be following suit. Despite standing side-by-side to renounce the stance of Trump on Iran last May, Total, the oil giant of France, and carmakers Renault and Peugeot have already halted their plans to invest in Iran.