Trump reverses plan to charge 20% fees on cargo through the Strait of Hormuz, citing investment and trade deals

President Donald Trump said on Tuesday that he is backing away from plans to charge a 20% fee on cargo transiting the Strait of Hormuz and would instead pursue investment and trade deals with Middle Eastern countries. The announcement marked a sharp shift from the fee concept, which would have added a surcharge tied to maritime flows through one of the world’s most strategically sensitive shipping corridors.

In remarks reported by PBS NewsHour, Trump said Middle Eastern governments would make investment and trade deals with the United States rather than accept a toll structure. He framed the change as a move away from a direct fee and toward agreements aimed at economic cooperation, the report said, though it did not lay out the specific terms or timeline of the proposed deals.

The Strait of Hormuz is a key choke point for regional and global maritime traffic. Any policy change affecting costs on vessels using the passage would have had practical consequences for shipping companies, energy supply chains, and the downstream industries that depend on uninterrupted transit. Under the earlier approach described by PBS, a 20% assessment would have effectively changed the cost structure for cargo movement through the strait.

Trump’s reversal comes as policymakers worldwide continue to treat security of the waterway as a matter of national and energy security. The president’s shift to trade and investment arrangements suggests he intends to use economic diplomacy rather than a fee-based framework to manage risk and influence transit-related outcomes.

The PBS report described the president’s Tuesday announcement as a reversal, implying that the fee plan had been under consideration or had been publicly discussed prior to the change. Details on whether any administrative or regulatory steps connected to the fee concept had been started were not included in the report, and it remained unclear in the coverage how quickly the administration would formalize the new approach.

For countries in the region, the new direction described by Trump indicates a change in the bargaining focus. Instead of negotiations centered on accepting a toll on cargo, discussions would be expected to revolve around investment commitments and trade arrangements with the United States, the report said, though the specific sectors, enforcement mechanisms, and potential cost-sharing were not specified.

The administration did not provide, in the PBS summary, additional figures on how the investment-and-trade framework would be structured or whether it would include any maritime-specific terms. As a result, the practical effect for carriers and shippers will depend on what the United States seeks to negotiate and how quickly any new agreements are finalized and implemented.