July 14 (Reuters) – U.S. President Donald Trump on Tuesday dropped the idea of charging a 20% fee on all cargo shipped through the Strait of Hormuz, and said he would instead take trade and investment deals with the Gulf states.
Read more Trump Says No One Should Be Able to Charge a Fee for the Strait of Hormuz
The change of plan comes a day after Trump proposed charging a 20% fee to guard the waterway.
“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 in a post on Truth Social.
Trump did not mention any commitments by Gulf states, saying “Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future.”
Read more Meta Used AI to Target Workers With Medical Conditions for Layoffs, Lawsuit Claims
Shortly after Trump made the 20% fee proposal on Monday, the U.N.’s shipping agency said it opposed fees on ships passing through maritime waterways but added it would await more details of what Trump had in mind.
In his post on Tuesday, Trump declared the Strait of Hormuz was open to all ship traffic except for Iran.
“We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,” he said.
Read more Russia Launches American and Two Cosmonauts to Space Station With Rare NASA Chief Visit
(Reporting by Bhargav Acharya and Ismail Shakil;Editing by David Ljunggren)
Copyright 2026 Thomson Reuters.
