Why did President Trump reverse his decision to impose a 20% fee on cargo through the Strait of Hormuz?

Trump reversed the decision after US allies in the Gulf — specifically Saudi Arabia, Qatar, Bahrain, Kuwait, and the United Arab Emirates — urged him to 'do it a different way' by making direct financial investments in the United States instead; he stated he 'doesn’t like the concept of a fee' and prefers 'massive investments into the United States.'

What did Trump say would replace the 20% 'United States Reimbursement Fee'?

Trump announced he would replace the 20% fee with 'Trade and Investment Deals that the various Gulf States will be making into the United States,' though he did not specify dollar amounts or which countries would participate, and it remains unclear whether any Gulf states have made new financial pledges in exchange.

Trump Shelves 20% Fee on Hormuz Cargo After Gulf Pressure

Jul 14, 2026

President Trump abandoned a proposed 20% fee on cargo through the Strait of Hormuz after Gulf allies urged investment deals instead. Oil prices reacted to the reversal, with Brent crude trading near $85 per barrel.

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