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World Criticizes Trump’s Initial Hormuz Tax Proposal

World Criticizes Trump’s Initial Hormuz Tax Proposal
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At a glance

  • US President Donald Trump initially proposed a 20 percent levy on ships transiting the Strait of Hormuz.
  • Reports indicate that this initial proposal drew criticism internationally.
  • Trump later scrapped the levy, replacing it with trade and investment deals with Gulf allies, but affirmed a "FULL Blockade" on Iran-linked vessels.

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US President Donald Trump announced on Tuesday that he was scrapping a planned 20 percent levy on ships transiting the Strait of Hormuz. This decision came a day after he initially proposed the fee, stating that Washington was now the "guardian of the Hormuz Strait" and would impose charges for its protection. Reports indicate that Trump's initial move to impose a tax on transit through the Strait of Hormuz drew criticism internationally.

Latest development

Reports indicate that Trump's initial move to impose a tax on transit through the Strait of Hormuz drew criticism internationally.

Latest updates

Reports indicate that Trump's initial move to impose a tax on transit through the Strait of Hormuz drew criticism internationally.

The Islamic Revolutionary Guard Corps (IRGC) has threatened to close "all other export corridors that benefit the US and its allies," following Tehran's closure of the Strait of Hormuz and the US reimposition of a naval blockade on Iranian ports. The IRGC stated that the renewed US blockade has cut off oil and gas exports, and routes serving US and allied interests could also be shut, emphasizing that "Regional energy exports are either shared by all or denied to all." The IRGC also affirmed that the Strait of Hormuz will remain closed until "the end of America’s evils." Analysts have suggested that Iran might use Houthi forces in Yemen to close the Bab-el-Mandeb gateway to the Red Sea, a tactic previously employed by Houthis against commercial shipping after Israel's assault on Gaza in October 2023. This latest threat follows a fresh round of US military strikes near the Strait of Hormuz, which the US stated were aimed at degrading Iranian capabilities used to attack commercial shipping. The US claimed Iran attacked seven commercial ships last week, resulting in casualties among crew members. The US military reportedly hit dozens of military targets near the Strait of Hormuz and Iranian coastal areas for seven hours.

The tentative ceasefire has effectively collapsed even before the US and Iran could begin technical-level talks. Renewed American strikes and Iranian retaliation now threaten the interim deal barely a month after it was signed. The two countries are sliding back towards war: Donald Trump has announced the resumption of the blockade, while Iran has closed the Strait of Hormuz. The US president has also notified Congress that the conflict with Iran is on.

The latest hostilities were apparently triggered by the strikes of Iran’s Revolutionary Guard on two tankers passing through the Strait of Hormuz for failing to follow instructions. The US strikes have mainly targeted civilian infrastructure, and Trump has rescinded the two-month sanction relief on Iranian oil export. US Sea Drones have also reportedly struck Iran.

US forces have carried out attacks for a third consecutive night after Tehran announced the closure of the Strait of Hormuz. On Monday, President Donald Trump had reinstated a blockade of Iranian shipping and proposed a transit fee, but later stated the strait was open to all shipping traffic except that of Iran.

Reports indicate new strikes and sirens in Kuwait and Bahrain. President Trump had previously stated on the "Hugh Hewitt Show" that Iran would be hit "very hard."

Iran’s Qeshm Island was reportedly hit by a US projectile around 7 p.m. on Tuesday, and another US projectile exploded near a water and electricity facility on Iran’s Kish Island. An explosion in Andimeshk in southern Khuzestan province was later confirmed as a controlled explosion and not an attack.

Separately, Iran attacked a US Army base in Jordan with ballistic missiles, while Bahrain reported fending off an Iranian aerial attack. Jordan confirmed shooting down four ballistic missiles, and explosions were heard in Manama, Bahrain.

The United Arab Emirates reported that an Indian crew member was killed and eight others wounded when two Emirati oil tankers were struck by Iranian cruise missiles in the Strait of Hormuz.

Trump has rejected claims regarding a Strait of Hormuz fee, stating that "No One Should Charge a Fee."

US President Donald Trump on Tuesday reversed his decision to impose a planned 20 percent "United States Reimbursement Fee" on vessels passing through the Strait of Hormuz, just a day after announcing the measure. The fee will be replaced by trade and investment agreements with Gulf nations, aimed at strengthening economic ties with Washington.

Despite dropping the transit levy, President Trump stated that the United States would maintain a full blockade targeting vessels linked to Iran. This measure would apply only to ships travelling to or from Iranian ports or transporting Iranian cargo.

Iran's military leadership rejected the US stance, stating it would not permit American interference in the strategic waterway and warned neighboring Gulf countries against cooperating with Washington.

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