UNITED NEWS INTERNATIONAL (UNI) — Two aircraft manufacturers, Boeing and Airbus, will lose nearly $39 billion in the wake of U.S. President Donald Trump’s decision to pull out of the Iran nuclear deal.
In 2016, the two companies signed deals with various Iranian airlines to help update the country’s aging fleet.
Airbus has already delivered three planes to Iran — the first new aircraft acquired by the Middle East country in 23 years.
However, Trump announced on May 8 that the U.S. was pulling out of the Iran nuclear deal and reimposing sanctions on Iran.
Treasury Secretary Steven Mnuchin told reporters later that day that Boeing and Airbus’ deals “will be revoked.”
While Airbus is a European company, it is subject to U.S. export restrictions because more than 10 percent of its jet parts are made by American companies.
A spokesman for Boeing said that the company would “consult with the U.S. government on next steps.”