BERLIN — For a president who has emphasized that the United States should not be laughed at, Donald Trump’s U.N. General Assembly speech Tuesday must have been a serious blow. First, world leaders laughed at him when he boasted of what he described as his unprecedented accomplishments. Then, top German diplomats smirked at his suggestion that they were “totally dependent” on Russia — well aware that investigators are probing just how dependent his own companions are on the Kremlin.
The laughter and smirks made for viral videos, but there was another, less noticed sign of diminishing U.S. influence that boiled up on the sidelines of the General Assembly session. As Trump emphasized U.S. “sovereignty,” the European Union, Russia and China announced plans to circumvent U.S. sanctions reimposed on Iran by Trump in May.
The May move to withdraw from the Obama-era Iran nuclear deal was supposed to force Europe to follow suit and to pressure Iran into renegotiating the deal.
Neither has happened, so far.
Instead, U.S. pressure appears to be resulting in the emergence of an alternative payment system that could shield some non-U.S. companies from American sanctions and allow Iran to export oil and other goods to corporations in the European Union and elsewhere. The latest announcement came after the E.U. passed an updated “blocking statute” last month with the same goal. That earlier effort required European companies to seek compensation from the U.S. Treasury Department, however, with an uncertain outcome.
“This will mean that E.U. member states will set up a legal entity to facilitate legitimate financial transactions with Iran, and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world,” the E.U.’s high representative for foreign affairs, Federica Mogherini, said Tuesday.