The Kabul Tribune (KT) — Reuters has reported that U.S. President Donald Trump has abandoned his proposal to impose a 20% fee on cargo passing through the Strait of Hormuz, saying he will instead pursue trade and investment agreements with Gulf states.
In a post on Truth Social on Tuesday, Trump said he made the decision after what he described as "highly productive conversations" with Middle Eastern leaders.
"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," Trump wrote.
According to Reuters, Trump did not announce any specific investment commitments from Gulf countries but said future investments would be "massive" and beneficial to both the United States and Gulf states.
The decision came one day after Trump proposed imposing a 20% fee on all cargo transiting the Strait of Hormuz to help cover the cost of protecting the strategic waterway.
Reuters reported that the United Nations' shipping agency said after Monday's proposal that it opposed imposing fees on vessels using international maritime waterways but would wait for further details.
Trump also said the Strait of Hormuz would remain open to international shipping, except for vessels traveling to or from Iranian ports or carrying Iranian cargo. He said those ships would be subject to what he described as a "full blockade."
