Since the US-Israeli war with Iran broke out, shipping companies have been calling for greater protection for vessels to safely cross through the Strait of Hormuz, a critical trade route that is controlled by Iran. President Donald Trump now says the United States can provide that — but in exchange for a 20% fee on cargo moving through the waterway.
“The U.S.A. 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,” Trump said in a Truth Social post on Monday.
His proposal, however, raises several questions of legality and feasibility.
First and foremost, people need to know what it would cost to evaluate whether they want to use the service, John McCown, a senior fellow at the Center for Maritime Strategy, told CNN. From Trump’s post, it’s unclear how the fee would be calculated.
“Is it 20% of what our cost on the blockade is, somehow divided by the number of ships?” McCown questioned. Other possibilities include 20% of the costs the US Navy incurs to escort cargo or a 20% charge on the value of the goods being transported.
