President AS Donald Trump announced that the United States will act as the "Guardian of the Strait of Hormuz" and impose a 20% tariff on all cargo passing through the strait in exchange for security protection. This decision has drawn criticism because the mechanism for calculating the 20% tariff is unclear and considered too expensive by experts. The high tariff is feared to make the US ship escort service unattractive to shipping companies. In addition, insurance companies also have the potential to refuse to provide coverage for ships crossing the Strait of Hormuz if the security risk is still considered high. The Strait of Hormuz is an international waterway that should grant free passage rights to all ships, and levying tariffs on passing ships is contrary to international law.
