Trump Addresses Strait and Tariffs

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Summary:

Trump Says Strait Agreement Has Not Been Reached, Imposes Tariffs on Polysilicon...

News Roundup

1. Trump Says No Agreement Has Been Reached on the Strait of Hormuz; Negotiations Are Underway

2. Iran Plans to Ban Hostile Parties from Passing Through the Strait of Hormuz, Imposing Heavy Penalties on Violators

3. Proposed Iran-Oman Strait Agreement Faces Dual Obstacles of U.S. Sanctions and Insurance Issues

4. Trump Announces Tariffs on Polysilicon and Its Derivatives

5. U.S. Military Plans to Deploy “Dark Eagle” Hypersonic Missiles to the Middle East, Targeting Deep-Seated Iranian Targets

News Details

Trump Says Agreement on the Strait of Hormuz Has Not Yet Been Reached; He Is Participating in Related Negotiations

On August 6 local time, U.S. President Trump stated that an agreement to reopen the Strait of Hormuz “cannot yet be said to have been formally reached,” but that the strait is currently “open to some extent.” He added that the U.S. is participating in related negotiations and that overall progress is going well.

Trump said that the U.S. Navy is currently carrying out a blockade operation against Iran and controlling the relevant waters, but safety risks such as mines may still affect the passage of commercial vessels. He noted that he is personally involved in the negotiations and believes the situation is moving in a positive direction.

Trump Announces Tariffs on Polysilicon and Its Derivatives

On August 6, local time, U.S. President Trump signed an executive order, pursuant to Section 232 of the Trade Expansion Act of 1962, imposing minimum import prices and additional tariffs on imports of polysilicon and its derivatives to support the U.S. domestic polysilicon, semiconductor, and solar supply chains.

The announcement stipulates the following minimum import prices: $21 per kilogram for polysilicon; $100 per kilogram for polysilicon ingots and wafers; $0.22 per watt for solar cells; and $0.38 per watt for solar modules. Additionally, the United States will impose a 15% ad valorem tariff on the polysilicon ingots and related derivative products listed in the annex to the announcement. These measures will take effect at 12:01 a.m. Eastern Time on December 4, 2026.

The announcement also authorizes the Department of Commerce to establish a “Bring It Back to the U.S.” incentive program. Companies that commit to building, renovating, or expanding production facilities for polysilicon, silicon ingots, wafers, or solar cells in the United States and begin construction by January 20, 2029, may apply for an exemption from Section 232 tariffs on certain imported equipment and related products.

Iran Plans to Ban Hostile Parties from Passing Through the Strait of Hormuz, Imposing Heavy Fines on Violators

According to a report by Iran’s Fars News Agency on the 6th, Salimi, a member of the Iranian Parliament’s Presidium, disclosed details of the preliminary draft of Iran’s proposed strategic management plan for the Strait of Hormuz. The plan includes a ban on hostile parties passing through the strait, and violators will be subject to fines of up to 20 percent of the value of their cargo.

The plan indicates that vessels from countries such as the United States and Israel will be prohibited from transiting the Strait of Hormuz; military and civilian cargo related to Israel will not be permitted to pass through the region; and vessels or cargo involved in operations targeting the “Resistance Front” will also be barred from transit. The plan further stipulates that countries and individuals that have caused losses to Iran will not be granted permission to transit the Strait of Hormuz or the Persian Gulf until they have compensated for those losses.

According to the proposal, violators of the relevant regulations would face penalties, including fines of up to 20 percent of the value of the cargo. The Iranian government will cooperate with the armed forces to assume responsibilities such as navigation guidance, monitoring of vessel traffic, and maintaining security in the Persian Gulf. Salimi said that this preliminary draft is currently under review by the Parliament’s National Security and Foreign Policy Committee, and that Parliament has invited relevant experts to offer opinions and suggestions to further refine the proposal.

Proposed Iran-Oman Strait Agreement Faces Dual Obstacles of U.S. Sanctions and Insurance

Four industry sources said that a proposed agreement between Iran and Oman would grant Tehran control over ships entering the Gulf via the Strait of Hormuz, but the agreement is difficult to implement due to U.S. sanctions and restrictive insurance clauses regarding any payments. Any fee-based measures would raise significant compliance issues, as the U.S. has imposed sanctions on Iran’s “Persian Gulf Strait Authority,” which is responsible for operating the waterway.

The U.S. Treasury Department also prohibits U.S. persons from accepting services provided by the Iranian government related to “ensuring safe passage.” Industry sources said that any payment could result in the freezing of assets. Another complicating factor is a clause introduced by the Lloyd’s Market Association in late July for war risk insurers.

Under this clause, insurance coverage will be terminated if a vessel pays transit fees, tolls, or other charges to pass through the Strait of Hormuz. An insurance industry source noted that shipping companies are caught in a dilemma, as the Lloyd’s Market Association’s clause prohibits insurers from providing coverage to shipowners who pay such fees, while Iran insists on collecting tolls.

Trump Acknowledges Shortages of Certain Types of Ammunition

On the afternoon of August 6, local time, while answering reporters’ questions at the White House regarding the U.S. military’s ammunition supply, President Trump stated, “We always need more [ammunition]. The supply of certain types of ammunition in the U.S. is ‘virtually unlimited,’ but there are some types where supplies are a bit tight.” He did not specify which types of ammunition were affected.

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