Trump Withdraws Proposal for 20% Tariff on Ships Passing Through Strait of Hormuz

Summary: US President Donald Trump has withdrawn his earlier proposal to impose a 20 percent cargo tariff on ships passing through the Strait of Hormuz. Shifting his strategy to focus on trade and investment agreements with Gulf countries aimed at creating jobs in the US, Trump emphasized maintaining full sanctions on Iranian vessels and cargo while reaffirming America’s policy to prevent Iran from developing nuclear weapons.

June 15, Kathmandu: US President Donald Trump has retracted his plan to levy a 20 percent cargo tariff on ships transiting the Strait of Hormuz. Instead, he announced that the United States will pursue major trade and investment agreements with Gulf nations, which he claims will benefit the country even more.

According to Trump, these agreements will bring substantial investment into the US and generate millions of new jobs. Writing on his social media platform Truth Social, Trump described “extremely positive talks” with leaders from the Middle East, following which the decision to impose the 20 percent tariff was reversed. Going forward, his priority will center on trade and investment agreements with Gulf countries.

He stated, “These investments will be significant in scale, resulting in new factories and industries being established in the US, which in turn will create well-paying job opportunities.”

Only a few days prior, Trump had announced that America would become the “protector” of the Strait of Hormuz and impose a 20 percent tariff on all cargo passing through this strategically vital maritime route. He argued that due to the critical importance of securing this route, other nations should bear the associated costs.

Trump had also affirmed maintaining a complete ban on Iranian vessels and cargo, while insisting that the Strait of Hormuz remain open to all nations except Iran. He credited the US military for the security and smooth flow of oil through the Strait, praising Defense Secretary Pat Hagerty, Joint Chiefs of Staff Chairman Dan Cane, Central Command Chief Admiral Brad Cooper, and US armed forces for their efforts.

Furthermore, the complete embargo on ships related to Iran and cargo coming to and from Iranian ports will continue, he reiterated.

Strategic Shift Amid Rising Tensions

Following Trump’s announcement, Iran outright rejected the US role in the region. Iranian Foreign Minister Abbas Araghchi mocked the proposed 20 percent tariff, stating, “20 percent is too much, we will be fair.” Iran’s Joint Military Command also declared that it would not allow the US to control or monitor the Strait of Hormuz and warned of a strong response if the US military interfered without Iran’s consent. Tehran further cautioned regional countries against cooperating with America.

With military tensions escalating between the US and Iran and ongoing attacks and retaliations between the two countries, Trump’s withdrawal of the cargo tariff proposal and emphasis on trade and investment agreements is seen as a significant strategic shift. Nonetheless, the ban on Iranian ships remains in effect, and the US policy to prevent Iran from developing nuclear weapons continues unchanged.