Trump drops 20 pc Hormuz shipping fee, bets on investment deals with Gulf nations
A day after proposing a 20 per cent cargo fee, Trump withdrew the plan, saying Gulf nations would instead make "massive" trade and investment commitments to the US
US President Donald Trump on Tuesday (July 14) dropped his proposal to impose a 20 per cent fee on cargo passing through the Strait of Hormuz, saying Gulf nations would instead make "massive" trade and investment commitments to the United States.
In a post on Truth Social, Trump said the Strait of Hormuz was now open to global shipping, except for vessels linked to Iran, and credited the US military with ensuring the security of one of the world's most crucial maritime routes.
The announcement came just a day after Trump said the US would become the "Guardian of the Hormuz Strait" and impose a 20 per cent reimbursement fee on all cargo moving through the strategic waterway. Iran had mocked the proposal, with Foreign Minister Abbas Araghchi saying, "20 per cent is of course too much. We will be fair."
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Explaining the reversal, Trump said he had decided to scrap the proposed shipping fee after holding discussions with leaders from the Gulf. "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.
He said the investments would be "MASSIVE" and would benefit both the United States and the Gulf countries. "Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future," he said.
Trump added that the new agreements would encourage a surge in factories, manufacturing plants and industrial equipment across the United States. "We will see Factories, Plants, and Equipment pour into the United States at Historic levels, which will create additional millions of High Paying AMERICAN Jobs!" he added.
The US President credited the American military with keeping the Strait of Hormuz open despite the ongoing conflict with Iran. "Oil is flowing like never before, thanks to the awesome Power of the United States Military," Trump wrote.