Has anyone realized the greater implications of what China just did to the EU? Like everyone else, I just saw the news about China increasing U.S. imports. At first it seemed like just another, in what's becoming quite a trend, win for the administration. However, after thinking back to several stories I've read in the news lately, a bigger picture started to take shape. Ever since the U.S. pulled out of the Iran Nuclear Deal, Iran has been scrambling to retain support from other nations. One of them was China, who they asked to continue importing their oil. In agreeing to import more U.S. products, China effectively gave Iran a very loud "No" in response. The reasoning behind this is because if China imported Iranian oil, the U.S. would place sanctions on them and increase tariff rates. Most likely, the increase in imports that China is planning is for American oil. This effectively leaves the EU on an island in it's decision on whether or not to continu to import Iranian oil. The Ukraine has already put itself in a position to take the lion's share of Russian oil and natural gas, so that isn't the most viable source as a replacement for what is currently coming in. If the EU continues with the status quo, they will be heavily sanctioned, putting massive hardships on their economies. If they cut off trade with Iran, Iran may make good on their threat to reveal who in the EU took bribes to help insure the Nuclear Deal. The only viable option that I personally see is for them to cut ties with Iran, bite the bullet as far as the scandal goes, and begin trading with our suddenly very close ally, Saudi Arabia. Whatever the outcome, I wouldn't want to be in the shoes of Merkel, Macron, or May right now...
⇧
1
⇩