President Donald Trump announced Tuesday that the U.S. is abandoning a proposed 20% [1] fee on cargo transiting the Strait of Hormuz.
The policy reversal affects one of the world's most strategic waterways, located between Oman and Iran. This shift suggests a pivot from punitive maritime tolls toward bilateral economic agreements to maintain regional stability and secure shipping lanes.
Trump said the decision followed significant pushback from global shipping companies. Additionally, leaders from Gulf states offered billions of dollars [2] in investment and trade deals as an alternative to the toll.
"I have abandoned the 20% fee," Trump said. "Gulf leaders offered billions of dollars in investment and trade deals" [3].
The proposed fee had been positioned as a method of reimbursement or leverage regarding the waterway. However, the president said that the U.S. would now prioritize these new economic partnerships over the cargo tax.
"We will replace the 20% fee with trade and investment deals," Trump said [4].
While some reports previously indicated the U.S. might seek to blockade Iranian ports alongside the fee, the current announcement focuses on the abandonment of the toll in favor of Gulf state cooperation. The administration has not yet detailed the specific terms of the trade and investment agreements that will replace the 20% [1] charge.
“"I have abandoned the 20% fee."”
This reversal indicates a strategic shift in U.S. foreign policy toward the Persian Gulf, moving away from direct financial levies on global trade in favor of long-term investment ties. By opting for trade deals over a transit fee, the administration avoids a potential escalation with shipping conglomerates and leverages the financial capital of Gulf nations to secure regional influence.
