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Trump drops 20% Hormuz cargo fee and moves to an Iran blockade
Trump said the fee would be replaced by trade and investment deals with Gulf states, after the proposal was announced the day before.
Trump has abandoned a plan to impose a 20 per cent charge on commercial cargo transiting the Strait of Hormuz, and instead is pressing ahead with a naval blockade aimed at Iranian trade, according to the SCMP Economy.
SCMP Economy reports that Trump said the proposed “United States Reimbursement Fee” would be replaced with trade and investment deals with Gulf states, following discussions with regional leaders, but he did not name participating governments or provide values for the commitments.
The reversal came less than a day after Trump announced the fee, which he framed as helping cover the cost of securing the strategic waterway.
SCMP Economy notes that Trump had described the United States as the guardian of the Strait of Hormuz, through which about a fifth of globally traded oil and natural gas passes, and that the blockade was set to take effect around mid July after incidents involving tankers.
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