Trump Scraps 20% Tariff on Strait of Hormuz, Says No One Can Charge Fees

US President Donald Trump has asserted that no country can impose fees on the Strait of Hormuz, the strategic waterway vital for global oil and gas supplies. The statement came after he rescinded a proposed 20 per cent tariff on cargo transiting the strait. The tariff threat was initially made amid renewed hostilities between the US and Iran, following a series of attacks on vessels in the Strait of Hormuz blamed on Tehran. Speaking during a meeting with Iraqi Prime Minister Ali al-Zaidi at the White House, Trump said, “We want them to make massive investments in the United States, not charge fees. I actually like that, because I don’t think anyone should be charging for that strait or any other strait anywhere in the world.” He indicated that Gulf nations had signalled a willingness to boost investment in the US rather than rely on revenue from transit fees. “The Gulf countries are going to be investing massive amounts of money in the US, and that makes me very happy. I think that’s much better,” Trump said. The President noted he had spoken with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait. “I’ve spoken to all of them, and they are very anxious to invest record amounts of capital in the United States, and that is very welcome. This way, there are no additional fees. I didn’t like the concept of that fee,” he added. Trump argued it was unfair for the US to shoulder the burden of protecting strategic shipping lanes used by nations worldwide without receiving broader economic benefits. “It’s not fair that we protect this strait for the benefit of the entire world,” he said. The tariff plan was initially announced as part of a renewed “blockade on Iran,” with Trump threatening a 20 per cent “reimbursement fee” on cargo transiting the Strait of Hormuz in exchange for US military protection. Shortly after, Trump announced on his Truth Social platform that he was withdrawing the tariff threat, replacing it with trade and investment agreements between Gulf states and the US. “Based on very productive talks with Middle Eastern leaders, I have decided to replace the 20% Reimbursement Fee to the United States with Trade and Investment Deals to be made by the various Gulf Countries in the United States,” he said. “The investment will be VERY, VERY LARGE, and at the same time, very profitable for them and their future.”