European Carmakers Scramble to Save Iran Business Plans

European carmakers are rushing to shield their just-launched operations in Iran after the U.S. abandoned the Iranian nuclear agreement yesterday and said it will immediately impose new economic sanctions on the country.

Those unspecified no-trade rules also would impose sanctions against U.S. allies in Europe that do business with Iran.

French Foreign Minister Jean-Yves Le Drian insists the Iranian nuclear accord “is still there.” But moderate Iranian President Hassan Rouhani reportedly advises Europe that it must quickly clarify its position and declare its intentions to meet its obligations under the pact.

The pact, which took 10 years to complete, was finalized in mid-2015 by Iran, China, France, Germany, Russia and the U.K. Since then French carmakers Renault and PSA Group have announced new or revived ventures to sell a combined 300,000 or more vehicles per year in Iran.

Trump condemns the deal as “horrible” and one-sided. He complains that it fails to address Iran’s missile program, terrorist activities or nuclear program beyond 2025. He insists that a tougher agreement is necessary to keep Iran from developing nuclear weapons or triggering an arms race in the Middle East.

Trump has urged Iran to negotiate a new deal to lift the new sanctions and remove the threat of unspecified additional consequences. Supporters of the original agreement, including many of Trump’s own staff, say it would have been more constructive to expand and modify the deal than to start over.