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Wed, Jul 15, 2026 | New Delhi
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Donald Trump’s U-Turn: Withdraws Decision to Impose 20% Tax, Know Details

July 15, 2026 Vipin Kumar 3 mins read
Donald Trump

New Delhi: Peace deals between the US and Iran have effectively collapsed, causing the situation to deteriorate further. Conditions in the Middle East are becoming increasingly precarious. Amidst this, US President Donald Trump has made a major announcement regarding the Strait of Hormuz.

Donald Trump has reversed his decision to impose a 20% tax on ships passing through the Strait of Hormuz a move he withdrew within 24 hours. Writing on the social media platform ‘Truth’, Trump stated that he decided to scrap the plan following discussions with Middle Eastern leaders. The move is linked to expectations that Gulf nations will make massive investments in the US, creating hundreds of thousands of jobs there.

Donald Trump’s Major Announcement

On Monday, US President Donald Trump announced plans to levy a tax of up to 20% on ships traversing the Strait of Hormuz. This decision drew criticism from several nations. Iran also commented sarcastically, acknowledging the validity of Trump’s point but arguing that a 20% tax was excessive, suggesting that Iran itself would charge a lower rate.

US Launches Strikes

According to US Central Command, American forces conducted a five-hour bombing campaign against Iranian cities, targeting military installations in Bushehr, Chabahar, Jask, Konarak, Abu Musa, and Bandar Abbas. Trump had proposed the 20% tax on ships passing through Hormuz, stating that the US would ensure the strait’s security and collect a 20% fee on every cargo shipment in return; new sanctions were also imposed on Iranian vessels and their clients.

Iran Delivers a Sharp Rebuttal

Responding to Donald Trump’s statement, Iranian Foreign Minister Abbas Araghchi remarked that whoever ensures a safe maritime passage deserves payment a responsibility Iran has long fulfilled. He noted wryly that 20% was too high, adding that they would charge a reasonable fee. The US attacked Iranian submarines and a naval base: CENTCOM used sea drones to strike a submarine and naval maintenance facility in Bandar Abbas, targeting Iran’s naval capabilities.

Escalating Tensions

It is worth noting that the situation between the US and Iran remains volatile. While there was once hope that matters would be resolved, Iran consistently disregarded US conditions, causing tensions to rise again and the situation to deteriorate further. The US has been continuously bombing Iranian military installations, resulting in estimated heavy damage. Meanwhile, Iran is targeting US military bases deployed across the Middle East, launching attacks on American airbases. At present, there appears to be no path toward peace between the two nations.

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