Trump's Strait of Hormuz tolling plot could generate nearly $200B annually for US
Category: News & Politics
Via: vic-eldred • 4 months ago • 20 commentsBy: Steven Nelson Published (New York Post)
S E E D E D C O N T E N T
WASHINGTON — President Trump's proposed 20% toll on commercial shipping through the Strait of Hormuz could generate nearly $200 billion annually in revenue — a windfall large enough to cover about half of the federal civilian payroll.
Trump announced the concept on Monday — after months of rejecting Iran's plan for post-war tolls — in what could amount to a negotiating tactic.
Brandon Daniels, CEO of supply chain AI company Exiger, told The Post that the annual volume of international commerce in the strait was between $880 billion and $970 billion before the war.
4President Trump announced plans Monday for a 20% US toll on the Strait of Hormuz. Aaron Schwartz/POOL via CNP/INSTARimages.com
That would translate into Trump tolls of between $176 billion and $194 billion — an amount that would, if enacted, cover the compensation for about 1 million or more federal civilian workers.
"I don't think that there is a real mechanism for us to charge that toll at this moment, and how we would charge that toll is still an open question of both economic policy and international law," said Daniels.
The US government has announced no concrete steps toward imposing the levy.
Trump's abrupt announcement is a break from his longstanding position that the strait should be toll-free after the conflict ends with Tehran — so much so that administration insiders believe he's establishing space to negotiate with the Islamic Republic, which wants to impose its own fees.
"It's a negotiation," a source close to Trump told The Post. "It's real until there's an alternative arrangement."
Trump has for months been attempting to broker an end to the Iran war that started Feb. 28. A cease-fire took effect on April 7 and was followed by a memorandum of understanding (MOU) that Trump signed June 17 calling for a 60-day toll-free reopening of the strait while nuclear talks continue.
Trump ordered airstrikes against Iran last Wednesday and declared both the cease-fire and MOU "over" — in what some advisers dubbed "Operation Bitch Slap."
The latest tensions emerged from disagreement over shipping lanes through the strait. Iran's military attacked three commercial ships last Monday and Tuesday after they followed a US-preferred route rather than one closer to the Iranian shoreline as the foes sought primacy over the waterway.
Trump unveiled his idea for a toll in a statement announcing a reimposition of a US blockade on Iranian ports.
"We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving. All other countries will have fair and open use of the Strait," Trump wrote.
"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. The process and formation will begin immediately."
The White House did not identify any steps toward imposing the US toll and sources close to the war effort told The Post those plans were not immediately widely distributed.
Asked about the start date of the new fee and whether any countries would be exempt, the US military's Central Command, which conducts operations in the region, directed The Post to a statement focused on reimposition of the blockade on Iran.
4The threatened toll is widely seen as a negotiating position by Trump. AP Photo/Razieh Poudat4Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Badr bin Hamad Al Busaidi shake hands during Saturday talks on navigation in the Strait of Hormuz. Oman's Foreign Ministry/UPI/Shutterstock
The Persian Gulf is a crucial source of global energy, and Daniels said his firm's supply chain data suggests about $600 billion in annual shipments of crude oil and between $80 billion and $120 billion annually in liquefied natural gas (LNG).
Roughly $200 billion-$250 billion in additional annual trade transit the bottleneck, including fertilizer, helium and hardened polymers, Daniels said.
A number of factors bear on the precise hypothetical proceeds, including the current market value of oil and LNG, as well as whether Trump would grant exceptions or discounts to allies in the region, such as Qatar, Saudi Arabia and the UAE.
Iranian foreign minister Abbas Araghchi trolled Trump's announcement.
"POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service," Araghchi tweeted. "Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. 20% is of course too much. We will be fair."
Tags
Who is online
95 visitors
Let's see: "The Guardian of the Strait of Hormuz" It has such a nice ring to it! Another Trumpism.
Bringing money in while punishing the Iranian regime. What a great concept!
It's international waters, you cannot tax or toll anyone. Not to mention it's not even US property surrounding it. Once again, you support illegal actions from this president no matter what his little fucking peabrain spits out.
Christ even Rubio said it's illegal.
Perhaps you missed it, the Gulf states persuaded Trump to forget about tolls in exchange for investments in the US
Perhaps you missed the title of your own article...
Trump's Strait of Hormuz tolling plot could generate nearly $200B annually for US
Sounds like a Sopranos plot. Typical Trump mafia tactics, as long as everyone pays more and he gets a taste.
Well, you never know what he's going to do. This time he undercut his Secretary of State to impose a fee for going through what his Secretary of State called "international waters."
You say this like it’s a good thing. Are you even human?
Having the enemies of the US thinking he might do anything? I think it is a good thing.
Are you even human?
An odd question from someone using an alien as an avatar.
So cutting off your nose to spite your face is a logical move in your world. That explains a lot.
So, we start with a completely open straight, no one pays anything to get through. Then some really mind-numbingly stupid xenophobic and homophobic bitter bamboozled bigots elect Donald Trump President, and he starts an unprovoked war with Iran that shuts down the straight, causes gas prices to skyrocket all while inflation was still no better than it was under Biden, is spending billions of our tax dollars a day and putting our sons and daughters in harm's way and now can't find an exit because he never had an exit strategy, and now, he proposes being the paid "Guardian of the Straights" which to do, would require boots on the ground and FAR more blood and treasure than we've already spent, and what do we get? Slimy scum bag Trump sycophants claiming we'll EVENTUALLY make a profit, MAYBE, if the US can actually control the straight and pay itself back for the war and, well, how much should we charge per soldiers' life? I mean WHAT THE ACTUAL FUCK?
This Steven Nilson from the Washington Post doesn't even mention what it would cost to control the straight, no he focuses on the $200 billion a year potential at the end of the tunnel, who cares about how many American lives it would cost to take the straight and to hold it. This, to me, proves how fucking out of touch with reality that not only Trump, but every one of his belly crawling, boot licking scum sycophants truly are.
Yeah, but what about the nuclear annihilation boogeyman?! Iran was minutes away from making bombs that would ensure the end of the planet, says Dumbo Don. He saved every life on the planet, and now everyone on the planet needs to cough up cash to their savior.
I don't even think the less than half that voted for him buy that bullshit anymore. I mean, it's just gotten so obvious and egregious he doesn't even try to hide the fact that he's grifting the fuck out of us while governing by the seat of his pants where his slightest whims get us embroiled in another endless war in the middle east. It just gets sadder and sadder every day for patriotic Americans. You can tell how rabid and desperate they are now with all this garbage being pushed about the 'scary socialists and communists coming for you' if you don't keep supporting the feckless wonder pouring billions of tax dollars and spending American soldiers lives on an unprovoked war while he profits off crypto and shreds the first amendment as he uses the government to go after critics and the DOJ to investigate political enemies instead of actual criminals. This all stinks to high heaven and the sycophants know it which is why they're running scared now.
I know DT makes some claims about what he may do as a way to negotiate. This one seems ridiculous to me.
First off it seems folks would get a better deal if they just paid Iran what they wanted for people to pass. And mu understanding it is international waters which means he couldn't do it even if he wanted to.
This one is just an empty claim.
And now he's backed away from that plan and has stated he will not look to impose a fee on ships transiting the strait. Looks like it took another business organization to tell him it was the wrong idea.
Agree.
In this case his large claim can be seen as bullshit that he can not do so making the claim as a negotiating tool won't fly and he should have known that before saying it
He could use a filter between brain and mouth.
Thats only been the case for the last 15 years.
IMHO , this is basically a non starter , and unenforceable on multiple levels , not to mention it makes absolutely no sense and would not pay for itself with the costs needed to try and enforce it .
a bunch of "noise " during an election year that means absolutely .... nothing .
That's what I was going to say. $200B probably wouldn't cover even one year of operations.