Trump backs down on tariffs in the Strait of Hormuz
President Donald Trump is backs down on his criticized move to impose 20 percent tariffs on all shipping through the Strait of Hormuz.
The reversal comes after "very productive talks" with leaders in the Middle East.
According to Trump, the United States will now instead negotiate "trade and investment agreements" with "various Gulf states" - countries around the Persian Gulf. He wrote this on Truth Social on Tuesday afternoon.
According to Trump, the investments will take place in the United States.
"We will see factories, facilities and equipment flow into the United States at historic levels, which will create millions more high-paying American jobs," Trump wrote.
“Actually like it”
At a press conference in the Oval Office, Trump said he changed his mind after “kings and emirs” contacted him with alternative proposals and pointed out that multi-billion dollar investments would be better than tariffs, the AP news agency reports. Trump said he agreed:
– I actually like it, because I don’t think anyone should be able to charge a fee for the strait.
The president unexpectedly presented his idea of American tariffs on goods transported through the Strait of Hormuz – which extends past Iran and Oman – on Monday. Such a fee has been criticized by the UN’s maritime agency, among others, for lacking support in international law. The US has also previously rejected all tariffs in the strait as unwanted and unreasonable.
Futures prices for crude oil fell sharply in reaction to Trump’s new announcement.
Blockade in effect
Trump also wrote that the resumed blockade of all maritime traffic to and from Iranian ports remains in effect.
In parallel, Iran – which claims to control the Strait of Hormuz – continued to attack ships traveling through the important waterway overnight. According to the country's Revolutionary Guard, ships that do not have a permit and ignore warnings are being attacked.
The strait is a so-called transit passage, which according to the UN Convention on the Law of the Sea guarantees ships free passage.
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