U.S. President Donald Trump on Tuesday backed away from his proposal to impose a 20% fee on all cargo transiting the Strait of Hormuz, opting instead to pursue trade and investment agreements with Gulf nations.
The shift comes just a day after Trump floated the idea of levying the fee as a means to “guard” the vital shipping corridor. In a post on Truth Social, he said the proposed “United States Reimbursement Fee” would be replaced by economic partnerships with countries in the region.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” he said.
While Trump did not outline specific commitments from Gulf governments, he indicated that incoming investments would be substantial and mutually beneficial.
The initial proposal had drawn attention from the International Maritime Organization, which stated it does not support imposing fees on vessels navigating international waterways, though it noted it would review further details.
In his latest remarks, Trump also said the Strait of Hormuz would remain open to global shipping, with the exception of vessels linked to Iran. He added that ships travelling to or from Iranian ports, or carrying Iranian cargo, would face a “full blockade.”
