Trump Drops 20% Strait of Hormuz Cargo Fee, Cites Gulf Investment Deals
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WASHINGTON, July 14, Saudi Arabia Breaking News — US President Donald Trump abandoned plans to charge commercial vessels a 20% reimbursement fee on cargo passing through the Strait of Hormuz, saying the proposed levy would be replaced by trade and investment agreements with Gulf states.
The reversal came one day after Trump announced that the fee would compensate the United States for providing maritime security in the strategic 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,” Trump wrote Tuesday on Truth Social.
The announcement was published shortly before Trump was scheduled to meet Iraqi Prime Minister Mohammed Shia Al-Sudani at the White House.
Senior Trump administration officials had previously questioned the legality and practical feasibility of charging ships for access to an international waterway.
“It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law,” Secretary of State Marco Rubio said last month.
Vice President JD Vance had also said the administration’s position was that “international waterways should be free of tolls.”
Trump himself had previously called for free passage through the Strait of Hormuz.
“We want it open. We want it free. We don’t want tolls. It’s international. It’s an international waterway,” he said in May.
