President Donald Trump has canceled a proposed 20 percent reimbursement fee on cargo ships transiting the Strait of Hormuz, instead pursuing trade and investment deals with Gulf states. The decision reverses a policy announced earlier this year that aimed to fund U.S. security efforts in the region.
Trump announced the change Tuesday, stating that Gulf nations will now be expected to make “massive” investments in the United States as an alternative to paying the transit fee. The initial proposal, intended to offset the cost of protecting ships passing through the strategically vital waterway, had drawn criticism from some quarters and raised concerns about potential disruptions to global shipping.
The shift comes after discussions with leaders from Gulf countries, according to reports. While details of the anticipated investments remain unspecified, Trump indicated they would be substantial. He did not elaborate on specific sectors or projects that might benefit from this investment.
No right-leaning outlets beyond Breitbart reported on this development. Left and lean-left sources confirm the policy reversal and emphasize the move is tied to securing economic commitments from Gulf states. The Middle East Eye published a video of Trump making the announcement, highlighting his expectation of significant financial contributions from these nations.
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