Trump Bans Trade in Iranian Metals, Ratcheting Up Tensions

REUTERS/Jim Young/File Photo

By Alex Wayne and Joe Deaux (Bloomberg) — President Donald Trump issued an executive order on Wednesday prohibiting the purchase of Iranian iron, steel, aluminum and copper, ratcheting up tensions with the Islamic Republic less than a day after it declared it may begin enriching uranium again in two months.

Trump said in his order that the prohibition on trading in the Iranian metals is aimed at preventing Tehran from developing a nuclear weapon or intercontinental ballistic missiles.

The president said in the order he seeks to deny the Iranian government money “that may be used to provide funding and support for the proliferation of weapons of mass destruction, terrorist groups and networks, campaigns of regional aggression, and military expansion.”

Iran said earlier on Wednesday that it would abandon limits on uranium enrichment that it agreed to under the 2015 nuclear accord negotiated with Trump’s predecessor, Barack Obama, in 60 days unless European signatories to the deal can find a way for the country to engage in trade despite U.S. sanctions.

Earlier this month, the U.S. revoked waivers that had allowed eight countries including India and China to import Iranian oil despite American sanctions. The Trump administration seeks to drive Iranian oil exports to zero to force Tehran to abandon support for militant groups in the Mideast and renegotiate the 2015 accord.

Trump has criticized the deal Obama negotiated as insufficiently strict on the Iranian regime.

“Under the Iran nuclear deal, Iran was free to engage in and sponsor terrorist networks, develop its missile force, foment regional conflicts, unjustly detain United States citizens, and brutalize its own people, all while maintaining a robust nuclear infrastructure,” Trump said in a statement.

“Because of our action, the Iranian regime is struggling to fund its campaign of violent terror, as its economy heads into an unprecedented depression, government revenue dries up, and inflation spirals out of control,” he said.

Iran exported about 138,000 tons of copper in 2018, according to Bloomberg Intelligence analyst Andrew Cosgrove.

Iran is the world’s 18th largest steel exporter, shipping about 9.24 million tons in 2018, according to the International Trade Administration, a bureau within the Commerce Department.

The country exported about 200,000 tons of aluminum in 2018, none of it to the U.S., according to Harbor Intelligence.

Trump said metals amount to about 10% of Iran’s exports.

© 2019 Bloomberg L.P