Sen. Thom Tillis (R-NC) on Tuesday criticized President Donald Trump’s suggestion that the United States could tax vessels passing through the Strait of Hormuz.
“I think that that is crazy,” Tillis said. “That makes no sense. It’s another tariff. You can call it a toll, but now it’s a water tariff. That doesn’t make sense to me.”
The debate sparked earlier this month, when Trump was asked during an April 6 press conference what he thought about Iran charging tolls on tankers passing through the Strait of Hormuz.
“What about us charging tolls?” Trump questioned. “I’d rather do that than let them have them. Why shouldn’t we? We’re the winner. We won. OK? They are militarily defeated. … I mean, we have a concept where we’ll charge tolls.”
Around 20% of the global oil supply flows through the channel, making it one of the most valuable waterways in the world. Trump announced on Sunday that the U.S. would institute a naval blockade on Iranian ports in the Strait of Hormuz, after Iranian restrictions severely hampered the flow of traffic through the channel, sending shockwaves through international energy markets.
The blockade started Monday and affects all vessels entering or departing Iranian ports, according to the Pentagon, a move that could cut off one of the regime’s major sources of funding. Vessels making their way through the channel from non-Iranian ports will not be affected by the blockade, according to U.S. Central Command.
Iran has controlled the waterway and reportedly charged a fee of up to $2 million for each ship that passes through, amid its war with the U.S. As the U.S. conducted peace talks with Iran earlier this month, Trump told ABC News that there could be a “joint venture” with Iran to charge tolls for passage.
“We’re thinking of doing it as a joint venture,” the president said. “It’s a way of securing it — also securing it from lots of other people. It’s a beautiful thing.”
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Tillis warned Tuesday that it would have a particularly damaging impact on allies in Asia, the region most affected by the energy crisis.
“To suggest that we’re going to add a toll onto their energy costs for a condition that existed only because of our legitimate interest in denuclearizing Iran doesn’t sound right to me,” he said. “Doesn’t sound right for our trading partners, like Taiwan.”
