Brazilian President Luiz Inacio Lula da Silva on Monday criticised US President Donald Trump’s proposal to impose a 20% fee on ships using the Strait of Hormuz, saying the plan would make the United States behave like a “pirate” state.
Trump recently announced plans to restore restrictions on Iranian ports and charge a 20% levy on cargo passing through the strategic waterway. He argued that the fee would help cover the cost of keeping the shipping route open.
Lula Condemns Proposed Shipping Levy
Speaking at a public event in Sao Paulo state, Lula said charging ships for safe passage resembled piracy rather than legitimate international policy.
“This used to be considered piracy,” Lula said. He added that a country such as the United States, which has long opposed piracy, should not adopt similar practices.
The proposed measure follows renewed tensions involving Iran. Tehran had blocked the Strait of Hormuz after US and Israeli attacks in late February disrupted regional security. Although both sides eased restrictions following a temporary agreement in June, Trump has pledged to restore the measures after renewed fighting.
Rising Costs Pressure Brazilian Economy
Lula warned that continued instability in the Middle East has increased prices of essential goods in Brazil. Consequently, consumers are paying more for beans, rice, tomatoes, onions, and fuel.
The Brazilian president, who is seeking a fourth term in October elections, said his government has introduced temporary measures to reduce the impact of higher fuel prices.
Furthermore, Lula noted that revenue from a 12% tax on crude oil exports, introduced in March, is helping the government offset the economic effects of rising global oil prices caused by the Iran conflict.
