Trump Drops His Own 20% Hormuz Shipping Fee: Gulf Kings And Emirs Called Trump Directly To Kill The Fee, Promising Massive US Investment Deals In Return While The Iran Blockade Stands
According to Bloomberg, President Donald Trump reversed his plan to charge cargo ships a 20% fee for transiting the Strait of Hormuz on July 14; less than 24 hours after announcing it, following direct lobbying from Gulf Arab allies who called the proposal impractical and damaging to regional trade.
Trump had announced Monday that the United States would become the self-declared “Guardian of the Hormuz Strait” and charge ships 20% of their cargo value as reimbursement for US military protection of the waterway.
The proposal immediately drew backlash from shipping industry analysts, Gulf governments, and legal experts who noted that Secretary of State Marco Rubio had stated as recently as June that charging tolls on international waterways violates existing international law.
On Tuesday, Trump posted on Truth Social that he had “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,” promising the investments “will be MASSIVE” without specifying amounts or participating countries. The Iranian blockade, however, remains in effect.
This is a pattern, not a policy. Trump floated a radical idea, absorbed the blowback, and quietly walked it back while claiming victory. The Strait question is no closer to being resolved and Iran still controls the waterway’s terms on the ground.
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