German exports to Iran fell by nearly half in the first six months of 2019, data showed on Monday.
German exports to Iran fell by 48 percent to USD758.8 million in the first six months of this year, Reuters reported, indicating that certain companies are trying not to vex the United States after Washington reimposed sanctions on Tehran.
Likewise, Iran’s sales to Germany for the same period plunged to EUR110 million, representing a 43-percent drop.
“The fact that trade between Iran and Germany has collapsed that massively is not a big surprise, unfortunately,” the BGA trade association told Reuters.
It pointed to the extra-territorial character of recent US sanctions which means that companies from third countries are also punished if they do business with Iran.
“German companies are forced to choose between their market activities in Iran and the United States, so it’s clear which market is preferred.”
President Donald Trump last year pulled the United States out of a nuclear accord between Iran and major powers. Under the 2015 deal, international sanctions against Iran were relaxed in exchange for Tehran curbing its nuclear program.
Last year, Germany exported mainly machinery, chemical products, and cars and car parts to Iran.