US President Donald Trump on Tuesday withdrew his proposal to impose a 20 per cent fee on cargo passing through the Strait of Hormuz, saying Gulf nations would instead make “massive” trade and investment commitments to the United States.
In a post on Truth Social, Trump said the Strait of Hormuz was now open to global shipping, except for vessels linked to Iran, and credited the US military for securing one of the world’s most important maritime routes.
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“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.
The announcement came a day after Trump said the US would become the “Guardian of the Hormuz Strait” and charge a 20 per cent reimbursement fee on all cargo passing through the strategic waterway. Iran mocked the proposal at the time, with Foreign Minister Abbas Araghchi saying, “20 per cent is of course too much. We will be fair.”