US President Donald Trump has withdrawn his proposed 20% transit fee on shipping through the Strait of Hormuz, saying the plan will be replaced with agreements aimed at boosting Gulf investment in the United States.
Washington, United States – Web Desk: Speaking at the Oval Office, Trump said he reconsidered the proposal after discussions with Gulf leaders and following criticism from the United Kingdom. He described increased investment from Gulf states as a more effective and mutually beneficial alternative.
Trump said he had received calls from several international leaders, including kings, emirs, and other officials, who urged him to pursue a different approach. According to the US president, the feedback influenced his decision to abandon the proposed transit charge.
He explained that the original proposal was intended to offset the cost of US security efforts protecting maritime traffic in the Strait of Hormuz. However, Trump said he now believes expanding Gulf investment in the US economy would deliver greater long-term benefits for both sides.
The Strait of Hormuz remains one of the world’s most strategically important maritime routes, carrying a significant share of global oil and liquefied natural gas exports, making any policy affecting the waterway closely watched by international markets.
