The US decision to reimpose sanctions on Iran could have unexpected consequences, Fareed argues in his Take from Sunday’s show. America can make sanctions bite because of the dollar’s status as a global currency. But the high-handed use of that power could ultimately be its undoing.
“European countries and companies are seething at the Trump administration’s moves. They have begun to discuss ways to respond,” Fareed says. “China will eagerly step in to take on more and more of the trade and economic relations with Iran, since it can conduct its dealings without recourse to the dollar. Iran will search for ways to free itself of its dependence on America’s currency.
“The long-term cost of the Trump administration’s reneging on the Iran deal might prove far more consequential and negative than we now realize.”
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“European countries and companies are seething at the Trump administration’s moves. They have begun to discuss ways to respond,” Fareed says. “China will eagerly step in to take on more and more of the trade and economic relations with Iran, since it can conduct its dealings without recourse to the dollar. Iran will search for ways to free itself of its dependence on America’s currency.
“The long-term cost of the Trump administration’s reneging on the Iran deal might prove far more consequential and negative than we now realize.”
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