Trump drops proposed 20 percent Strait of Hormuz cargo fee, says, ‘Gulf states will invest in…’, what exactly happened?

US President Donald Trump has withdrawn his proposal to impose a 20 percent “reimbursement fee” on cargo passing through the Strait of Hormuz. Instead, he said the United States will focus on trade and investment agreements with Gulf countries. The announcement came on Tuesday after what Trump described as “highly productive conversations” with leaders from West Asia.

US announces blockade on Iran-linked ships

Trump also announced a full blockade on ships connected to Iran. According to his statement, the Strait of Hormuz will remain open to international shipping, but ships travelling to or from Iranian ports, or carrying Iranian cargo, will not be allowed. In a post on Truth Social, Trump said the move was aimed only at Iran and not at other countries using the strategic waterway.

Trade deals to replace the proposed fee

Trump said the proposed 20% cargo fee would now be replaced by major trade and investment deals with Gulf states. He said these investments would be large and would benefit both the United States and Gulf countries in the long term.

The report says Trump was serious about the proposal. Earlier, a report by Semafor said Trump had been serious about introducing the 20% fee for cargo moving through the Strait of Hormuz, although some officials within his administration opposed the idea.

Some US officials opposed the cargo fee

According to the report, several senior officials were uncomfortable with the proposed charge. US Vice President JD Vance has said the administration believes international waterways should remain free of tolls, while Secretary of State Marco Rubio joined Gulf Cooperation Council countries in opposing any fees or attempts to control the Strait of Hormuz.