Brazilian President Luiz Inacio Lula da Silva has condemned US President Donald Trump’s proposal to impose a 20% levy on commercial vessels passing through the Strait of Hormuz, labeling the measure as "piracy." The sharp rebuke from a major emerging-market leader intensifies the diplomatic fallout surrounding the US administration's attempt to monetize transit through one of the world's most critical energy chokepoints.
The comment adds another layer of geopolitical complexity to the Strait of Hormuz, where shipping risk premiums have already been elevated by recent military strikes on Iranian infrastructure.
Global shipping executives have previously warned that such a levy could backfire, potentially choking off trade flows rather than generating revenue, as carriers seek alternative routes or face prohibitive costs.
Lula’s characterization of the fee as piracy underscores the growing international resistance to the policy.
With Middle East producers already accelerating pipeline construction to bypass the Strait, the political opposition from key trading partners threatens to undermine the economic viability of the US proposal.
The friction highlights the delicate balance between security objectives and the free flow of global commerce.