Trump abandons proposed 20% fee on Strait of Hormuz cargo

Washington – President Donald Trump announced that he is dropping his earlier proposal to impose a 20 percent fee on cargo passing through the Strait of Hormuz. The move reverses a plan that had been floated in recent weeks as a means to pressure Iran over its nuclear program and to generate revenue for the U.S. Treasury. In a brief statement, the president said the fee would “only hurt American businesses and consumers” and that the administration will instead pursue “other diplomatic and economic tools” to address regional security concerns.

The proposed levy had drawn criticism from shipping companies, trade groups and several U.S. allies, who warned that a steep surcharge could disrupt a vital global oil route that handles roughly a fifth of the world’s petroleum shipments. Analysts noted that the abandonment of the fee may ease immediate market anxieties while leaving open the possibility of alternative measures aimed at curbing Iran’s influence in the Gulf. The administration’s shift signals a recalibration of its strategy toward the Hormuz corridor as negotiations with Tehran continue.