US President Donald Trump has abandoned plans to impose a 20% fee on cargo transiting the Strait of Hormuz, saying Gulf states will instead provide trade and investment commitments to the United States in return for continued security in the strategic waterway.
In a post on Truth Social on Tuesday, Trump said the Strait would remain open to all shipping except vessels calling at Iranian ports or carrying Iranian cargo, as the United States prepared to reinstate its naval blockade of Iran. “We will therefore have a FULL Blockade, but only on ships coming to and from Iranian ports, or carrying anything to do with Iranian cargo,” Trump wrote.
The announcement marks a reversal from Monday, when Trump declared the United States the “Guardian of the Hormuz Strait” and proposed a 20% reimbursement fee on all cargo passing through the waterway to help fund maritime security operations. Trump said the proposal had been dropped after what he described as highly productive discussions with regional leaders.
“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 wrote. He did not identify the countries involved, disclose the value of any proposed investments or say whether formal agreements had been reached.
The White House has yet to release further details or supporting documentation. The policy shift removes, for now, a proposed transit charge that would likely have conflicted with the International Maritime Organization Council’s long-standing position that passage through the Strait of Hormuz should remain free of tolls and charges under international law.
The announcement came as US Central Command prepared to enforce a renewed naval blockade of Iranian ports and coastal areas. Under US naval guidance, vessels entering or leaving Iranian ports without authorisation may be intercepted, diverted, boarded or seized.
Neutral ships transiting the Strait between non-Iranian destinations will continue to be allowed passage but may be stopped and inspected to verify they are not carrying prohibited cargo or attempting to breach the blockade. Humanitarian shipments of food, medicine and other essential supplies may still be permitted following US Navy vetting and inspection.