President Donald Trump cancelled a planned 20% [1] cargo fee for ships transiting the Strait of Hormuz one day [2] after he first announced the measure.
The reversal affects one of the world's most critical oil transit chokepoints located between Oman and Iran. Any disruption or additional cost to shipping in this region typically triggers volatility in global energy markets.
The proposed toll would have applied to vessels moving through the strait, which the U.S. helps secure. However, the administration shifted its position, removing the fee shortly after it was introduced [2].
Trump said he did not like the concept of a fee. He said that while the U.S. protects the waterway, he felt the specific mechanism of a toll was not the correct approach.
"This way there is no fee, I don’t like the concept of a fee, but at the same time it’s not fair that we are protecting this strait for the entire world," Trump said.
The decision to scrap the 20% [1] charge comes as the U.S. continues to manage security tensions in the Persian Gulf. The quick turnaround of one day [2] between the announcement and the cancellation suggests a rapid internal reassessment of the policy's economic or diplomatic impact.
By removing the fee, the administration avoids potential conflicts with international shipping companies, and foreign governments that rely on the free flow of commerce through the strait. The move ensures that cargo costs remain stable for the time being.
“I don’t like the concept of a fee”
The rapid reversal of the cargo fee highlights the tension between the U.S. desire to offset the costs of maritime security and the economic necessity of keeping global trade routes open. By abandoning the toll, the administration prioritizes market stability and international cooperation over a direct payment model for security services in the Persian Gulf.
