Trump drops 20% fee plan for Strait of Hormuz in favour of deals with Gulf states

WASHINGTON – US President Donald Trump on July 14 dropped the idea of charging a 20 per cent fee on all cargo shipped through the Strait of Hormuz, and said he would instead take trade and investment deals with the Gulf states.

The change of plan comes a day after Trump proposed charging a 20 per cent 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.”

Shortly after Trump made the 20 per cent fee proposal on July 13, the UN’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 July 14, 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. REUTERS