Trump to Charge 20% Tariff to Protect Strait of Hormuz Passage

Since the war between the United States, Israel, and Iran erupted, shipping companies have requested greater protection. They seek to cross the Strait of Hormuz safely, a key commercial route. President Donald Trump responded with a controversial proposal.

The United States could provide that protection, according to Trump. But he would demand in exchange a 20% tariff on all cargo transported. The announcement came through a message published on Truth Social on Monday.

“The USA will, from now on, be known as ‘THE GUARDIAN OF THE STRAIT OF HORMUZ'”, wrote the president. He added that, as a matter of fairness, the United States would be reimbursed for security costs. The measure would apply to all cargo transiting the maritime route.

Naval Blockade Returns to the Region

Trump also announced the resumption of the U.S. naval blockade against Iran. This measure excludes only Iranian vessels and Iranian clients from the waterway. All other countries would have, according to the president, “fair and open” use of the strait.

The blockade will take effect Tuesday at 4:00 p.m. Eastern time. This was confirmed by U.S. Central Command in an official statement. The measure comes amid an unprecedented recent military escalation.

Trump himself unilaterally declared the ceasefire reached with Iran last week terminated. He claimed Tehran had broken a previous undisclosed agreement. “They always break them. We’ve had ten agreements with these people,” the president told Fox News.

Legal Doubts About the New Tariff

The presidential proposal immediately generated several questions about its legality. John McCown, senior researcher at the Center for Maritime Strategy, questioned the lack of clarity. He noted that people need to know the actual cost before deciding whether to use it.

Based on Trump’s statement, it is impossible to calculate the exact tariff. McCown raised several possibilities about how the charge could be structured. It could be a percentage of blockade costs or of cargo value.

The White House did not respond to requests for more information about the measure. According to McCown, the tariff would likely prove too high for any buyer. He explained that shippers typically pay between 2% and 3% of the value of their goods.

The Risk That No One Pays the Tariff

A duty ten times higher than usual would, according to the expert, be completely unaffordable. However, insurers could have the final say on this matter. They could refuse to cover ships transiting Hormuz if they consider the risk too high.

The Strait of Hormuz constitutes an international maritime waterway of free passage under international law. Iran had previously imposed what it described as service fees on vessels. Those charges, however, are not currently in effect.

James Kraska, professor of maritime law at the Naval War College, termed those tariffs as disguised tolls. He asserted that this practice is not permitted under current international law. His reading of Trump’s message points toward a different voluntary payment scheme.

A Model That Could Be Legal

According to Kraska, the United States would propose escorting ships in convoy. Those wishing to join that protection would have to assume the corresponding cost. This modality would comply with international law by being completely voluntary.

The expert clarified that the legality of a measure does not guarantee that it is advisable. Secretary of State Marco Rubio had indicated a different stance last month. He asserted that no country can charge fees for transit through an international maritime waterway.

The International Maritime Organization also flatly rejected the U.S. proposal. It asserted that there is no legal basis for imposing mandatory tolls in international straits. The regulatory body insisted on maintaining its historical position on this matter.

Iran Responds Harshly to the Proposal

Iranian Foreign Minister Abbas Araghchi reacted quickly to Trump’s announcement. He asserted that Iran, not the United States, actually controls the strait. He considered it fair to receive compensation for providing that maritime security service.

“20% is of course too much. We will be fair,” wrote the Iranian official on his official account. The joint command of Iranian armed forces warned about the consequences of continuing attacks. It cautioned that the war could extend throughout the entire Middle East region.

Iran also threatened to respond forcefully to ships navigating outside routes approved by Tehran. It warned that any regional cooperation with Washington would be considered an act of war. Tension in the region thus remains at its recent highest point.

A Discouraging Historical Precedent

Maritime industry advisor Bjorn Vang Jensen recalled a similar historical precedent. He mentioned the case of Denmark, which charged tariffs for crossing the Øresund Strait. That practice extended from the 15th century until the mid-19th century.

Those tariffs were also calculated based on the declared value of cargo transported. Curiously, that practice ended thanks to a direct intervention by the United States. The historical irony did not go unnoticed among maritime sector analysts.

As parties exchange accusations and threats, global commerce watches with concern. The future of the Strait of Hormuz remains uncertain.