Yesterday, US President Donald Trump declared that his country will impose a 20% toll on all cargo passing through the Strait of Hormuz. Barely a day later, Trump has now reversed his stance on the subject.
Donald Trump Latest News: Donald Trump to ‘Replace’ 20% Toll for Strait of Hormuz
US President Donald Trump has announced that he will officially ‘replace’ the previously announced toll of 20% that was to be imposed on all cargo passing through the Strait of Hormuz.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States”, he shared in a Truth Social post today.
Trump announced the decision to impose the 20% toll just yesterday. “The USA will be, from this point forward, known as “THE GUARDIAN OF THE HORMUZ STRAIT,” but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World. The process and formation will begin immediately”, Trump shared via a post on his social media platform Truth Social.
Donald Trump Latest News: Why Did Donald Trump Reverse His Stance?
President Trump is not someone who generally changes his stance on a policy, so his decision to ‘replace’ the previously announced cargo fees has sparked questions.
While no official reason has been shared, Trump has attributed his decision to ‘highly productive conversations with the Middle East leadership’. Shortly after its announcement, the US decision to impose a toll had caused backlash from maritime experts, shipping companies and the legal community.
Many wondered about the practical & legal aspect of such a charge, since the waterway does not fall under American jurisdiction. It also appeared to contradict a previous statement from Secretary of State and diplomat Marco Rubio who stated that “It’s an international waterway. No country is allowed to charge toll or fees on an international waterway. That’s existing international law”.
Donald Trump Latest News: The Revised Plan
According to Trump, the focus will now be on “trade and Investment Deals that the various Gulf States will be making into the United States”. The investments will be ‘massive’ and also ‘extraordinarily good’ as per Trump. He also added that plants and equipment will “pour” into the United States at “historic” levels, which will then lead to generation of high paying jobs.
Iranian Authorities Response to Trump’s Decision
Iranian authorities have slammed Trump’s decision to impose a toll on cargo shipping in the Strait of Hormuz. Abbas Araghchi, the country’s foreign minister and top diplomat said on X: “POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. Iran has always been the GUARDIAN of the Strait and will remain so FOREVER”.
Araghchi then claimed that “20 per cent is of course too much. We will be fair”. He also claimed that Iran is the ‘true guardian’ of the international waterway, rather than the US.
