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Trump’s Strait of Hormuz Fee Could Double the Cost of Shipping
The New York Times • • general
Key Points:
- President Trump proposed charging a 20 percent fee on all cargo passing through the Strait of Hormuz to recover U.S. military protection costs for vessels using the waterway.
- Shipping operators and logistics experts warn that such a fee would significantly increase transportation costs, potentially more than doubling the cost of shipping oil through the strait.
- Analysts are skeptical about the fee's implementation due to the economic burden it would impose, and current concerns among ship operators focus more on escalating U.S.-Iran tensions.
- The exact calculation method for the 20 percent fee remains unclear, but if applied to cargo value, it could add approximately $16 per barrel to oil shipping costs, raising total transport expenses to about $26 per barrel.
- The proposal marks a shift in U.S. policy, as the country has historically supported free navigation through the strait without imposing such charges.
