Trump withdraws Hormuz fee plan, citing Gulf investment in U.S.

U.S. President Donald Trump announced Tuesday he is withdrawing a plan to impose a 20% fee on all goods transiting the Strait of Hormuz, opting instead for trade and investment agreements with Persian Gulf allies.

Trump stated that leaders from Gulf nations contacted him, expressing a desire to make substantial investments in the U.S. rather than pay the proposed fee. He indicated satisfaction with this development, noting that Gulf countries will invest heavily in America.

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I have decided, to replace the 20% 'American compensation fee' with trade and investment agreements that will be reached by the Persian Gulf countries with the United States.

The initial plan, announced Monday, involved the U.S. acting as a "guardian" of the Strait of Hormuz, imposing the fee as a security compensation. The U.S. military also announced the resumption of a naval blockade against Iran starting Tuesday.

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The Strait of Hormuz is 'not important' to the United States, but it is important to the Gulf allies.

However, Trump later posted on his social media platform, Truth Social, that trade and investment deals would replace the fee. He specified that the U.S. would continue a "comprehensive blockade," but it would be limited to vessels traveling to or from Iranian ports or carrying goods related to Iran.

When asked about the change in decision, Trump told reporters at the White House that the Strait of Hormuz is "not important" to the U.S. but is crucial for Gulf allies. He reiterated that numerous leaders expressed willingness to invest significantly in the U.S., which he found preferable to imposing fees, especially as the U.S. guards the strait for global benefit, including for China and other nations.

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Gulf countries will invest huge amounts of money in the United States, 'which makes me very satisfied, and I think it's much better.'