Trump Makes A U-Turn On 20% Hormuz Toll, Says Gulf States Will Invest In US Instead: ‘America Is Winning Again’
Trump Makes A U-Turn On 20% Hormuz Toll, Says Gulf States Will Invest In US Instead: ‘America Is Winning Again’ Published By, Last Updated: July
Trump Makes A U-Turn On 20% Hormuz Toll, Says Gulf States Will Invest In US Instead: ‘America Is Winning Again’ Published By, Last Updated: July 14, 2026, 20:51 IST He said the decision followed "highly productive conversations" with West Asian leaders and announced a full blockade on ships travelling to and from Iranian ports. The US president said Gulf trade and investment deals would replace the proposed 20% "reimbursement fee" on cargo transiting the Strait of Hormuz. (IMAGE: AFP) US President Donald Trump on Tuesday backed away from his proposed 20% “reimbursement fee" on cargo transiting the Strait of Hormuz, saying it would instead be replaced by trade and investment deals with Gulf states. He said the decision followed “highly productive conversations" with West Asian leaders and also announced a full blockade on ships travelling to and from Iranian ports or carrying Iranian cargo. A report by Semafor earlier had said that Trump was “very serious" about imposing the fee on cargo transiting the Strait of Hormuz, even though some people within his own circle were opposed to the proposal.
“The Strait of Hormuz is open to ALL Ship traffic except for Iran — and that is because of their lying, violent, malicious leadership, which is taking them down the path of TOTAL DESTRUCTION," Trump posted on Truth Social. He also announced that he was replacing the proposed 20% reimbursement fee with trade and investment deals involving Gulf states. “The Strait of Hormuz is 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 to do with Iranian cargo. 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. Those investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future." Semafor also reported that several people within Trump’s administration were uncomfortable with the proposed levy.
Vice President JD Vance has previously said the administration believes “international waterways should be free of tolls", while Secretary of State Marco Rubio joined Gulf Cooperation Council countries in rejecting “any tolls, fees or attempts to assert control over the strait." News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit Key Questions Answered What impact will this policy shift have on global trade? US President Donald Trump reversed his proposal for a 20% fee on cargo passing through the Strait of Hormuz, announcing instead that Gulf states would invest in the US. How will Gulf states' investments benefit the US economy? Gulf states will invest in the US as part of trade deals, replacing a proposed Hormuz toll. These investments are significant, with countries like UAE, Qatar, and Saudi Arabia investing at the trillion-dollar level. This economic partnership is highlighted by Qatar's growing investment in the United States. Could this new approach escalate tensions with Iran? Yes, the new approach of blockading ships in the Strait of Hormuz and demanding a 20% reimbursement fee could escalate tensions with Iran.
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