U.S. President Donald Trump gestures as he participates in a bilateral meeting with Iraqi Prime Minister Ali al-Zaidi (not pictured) in the Oval Office at the White House in Washington, D.C., U.S., July 14, 2026.
| Photo Credit:
Evan Vucci
U.S. President Donald Trump on Tuesday
dropped the idea of charging a 20% fee on all cargo shipped
through the Strait of Hormuz, and said he would instead take
trade and investment deals with the Gulf states.
The change of plan comes a day after Trump proposed
charging a 20% fee to guard the waterway.
“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
said in a post on Truth Social.
Trump did not mention any commitments by Gulf states, saying
“Investments will be MASSIVE but, at the same time,
extraordinarily good for them, and their future.”
Shortly after Trump made the 20% fee proposal on Monday, the
U.N.’s shipping agency said it opposed fees on ships passing
through maritime waterways but added it would await more details
of what Trump had in mind.
In his post on Tuesday, Trump declared the Strait of Hormuz
was 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 have to
do with Iranian cargo,” he said.
Published on July 14, 2026
