Trump to Impose 20% Tax on Gulf Allies' Cargo Transiting Strait of Hormuz

US President Donald Trump has confirmed plans to impose a levy on vessels passing through the Strait of Hormuz, demanding that Gulf states pay 20 per cent of the cargo value per ship. Writing on his SocialTruth platform on Tuesday, Trump declared that while other nations would continue to enjoy fair and open access to the waterway, the United States would henceforth be recognised as the ‘Guardian of the Strait of Hormuz’. He stated that, as a consequence and in the interest of fairness, the US would receive reimbursement equal to 20 per cent of all shipped cargo value to cover the costs of ensuring safety and security in what he described as a highly volatile region.

Speaking to reporters in the Oval Office, Trump pressed Gulf nations to compensate Washington for its military operations in the strait, citing the substantial expense of protecting regional allies amid ongoing tensions with Iran. He argued that the US had deployed significant resources to secure the strategic chokepoint and was now entitled to compensation. Trump specifically named Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait as beneficiaries of American military commitment, adding that Washington also protected Israel.

The situation follows a shift in the strait’s status after US-Israeli strikes on Iran on 23 February. Prior to the attacks, the Strait of Hormuz was open to all civilian and commercial vessels without restriction. Iran subsequently altered that status in retaliation and floated the idea of imposing its own transit tax to fund post-strike recovery. Iranian counter-strikes also targeted US bases in Gulf states, causing damage and casualties beyond the bases themselves. With renewed US strikes on Iran, Gulf nations including the UAE, Qatar, Oman, Jordan, and Kuwait have again become targets for Iranian retaliation, meaning they now face compounded losses from the American taxation scheme.