Trump drops 20% Hormuz cargo fee

July 15, 2026 (MLN): U.S. President Donald Trump abandoned his proposal to impose a 20% fee on all cargo passing through the Strait of Hormuz, saying the plan would instead be replaced by trade and investment agreements with Gulf states.

The decision came just a day after Trump declared the proposed 20% charge on shipments using the strategic waterway.

In a post on Truth Social, Trump said the change followed what he described as highly productive discussions with leaders in the Middle East.

"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.

Trump did not disclose any specific commitments from Gulf countries, but said the investments would be "MASSIVE" while also being beneficial for the participating states and their future, according to Reuters.

The reversal came after the United Nations' shipping agency responded to Monday's proposal by stating that it opposed the imposition of fees on vessels transiting international maritime waterways, while noting it would wait for further details of the proposal.

In the same Truth Social post, Trump also said the Strait of Hormuz would remain open to all maritime traffic except vessels linked to 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.

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