Trump toggles on Strait of Hormuz toll amid backlash

President Donald Trump announced and then swiftly abandoned a plan to charge a 20% toll on cargo ships transiting the Strait of Hormuz, sparking international confusion and criticism.

The proposal

On July 13, Trump declared on Truth Social that the U.S. would become the “GUARDIAN OF THE HORMUZ STRAIT” and charge a “20% on all cargo shipped” to cover the costs of security Source: CNN. He reiterated the idea in a Fox News interview during a renewed blockade of Iranian ships Source: Al Jazeera. The proposal came despite months of warnings from his own advisers, including Secretary of State Marco Rubio, who had said in June that “no country is allowed to charge tolls or fees” on international waterways Source: PolitiFact.

The backlash

Military and legal experts called the toll unprecedented and likely illegal under the U.N. Convention on the Law of the Sea, which the U.S. accepts as customary law Source: PolitiFact. Andreas Krieg of King’s College London told Al Jazeera the idea “misunderstands what the dispute … has become” and would “inadvertently validate Iran’s own argument” that passage can be monetized Source: Al Jazeera. Gulf allies—including Saudi Arabia, the UAE, Bahrain, and Qatar—frantically called Trump to oppose the plan Source: CNN.

The reversal

Within 24 hours, Trump backed down. He posted that he would replace the “20% United States Reimbursement Fee with Trade and Investment Deals” from Gulf states Source: El País. At a White House appearance, he said he does not believe “anyone should be able to charge a fee for the use of the strait” Source: The Guardian. The episode highlighted the chaotic nature of Trump’s foreign policy and left the U.S. position on Hormuz murky.