Newsmax: Rep. Harrigan to Newsmax: Trump's Hormuz Fee 'Problematic'
Contact: Lexi Kranich (814) 380-4408
WASHINGTON, D.C.—Rep. Pat Harrigan, R-N.C., told Newsmax on Tuesday he is not convinced President Donald Trump's proposal to impose fees on commercial shipping through the Strait of Hormuz would work as intended.
"I think the fee itself is problematic because, on one hand, you understand what the president is trying to do," Harrigan said on "National Report." "He is trying to figure out a way to pay for the security operations that the United States is going to have to commit to moving forward, given the decisions Iran has made over the last couple of weeks."
Trump's proposal to charge commercial cargo transiting the strait could generate as much as $194 billion annually for the U.S. if fully implemented, according to a New York Post analysis based on pre-war shipping volumes.
Trump unveiled the proposal Monday as he declared the United States would become the "Guardian of the Hormuz Strait" while reinstating an American blockade of Iranian ports.
Harrigan said the toll appears to conflict with long-standing principles of free trade.
"It does seem to kind of undermine the overall international treaty apparatus that we have," he said, "that nobody charges tolls for geographical waterways around the world. And that is something that is unbelievably important to maritime shipping."
He added that while Trump's proposal may provide a short-term benefit, it could create long-term complications.
"I think the president's trying to do something that works in favor of the United States in the short term, but it certainly also comes with long-term precedent issues," Harrigan said.
Asked whether the U.S. should use frozen Iranian assets to help cover the costs of its military involvement in the Middle East, Harrigan said that approach may be more practical.
"I think it's a fantastic idea. I think it really ultimately comes down to who actually has that money," he said.
He noted that while the United States controls some Iranian assets, other countries hold significant amounts as well.
"You would also need their cooperation and effectively their sanction, that that would be a legal move to make, given the circumstances," Harrigan said. "Whether or not they decide to make those decisions is frankly outside of our control."
The U.S. launched strikes on Iran early Tuesday, hours after Trump vowed to reinstate an American blockade of Iranian ports. Iran responded with attacks on U.S. allies in the Middle East.
The renewed hostilities appear to have derailed an interim agreement intended to pause the fighting, reopen a critical global energy shipping route, and give negotiators time to reach a permanent end to the conflict.