Trump drops 20% Strait of Hormuz fee, offers investment-for-protection plan

Washington – President Donald Trump announced Wednesday that the United States will no longer pursue the proposed fee on neighboring nations that was slated to fund a new transit‑protection program. In a statement released by the White House, Trump said the administration will instead seek direct investment from the regional countries themselves, offering enhanced security for their cross‑border shipments in exchange for capital contributions to U.S. infrastructure projects.

The fee, originally introduced by the Department of Homeland Security as a means to offset the costs of increased inspections and customs enforcement along the southern border, had drawn criticism from trade groups and foreign governments. Trump’s revised approach calls for participating nations to allocate funds toward U.S. port upgrades, road improvements, and technology upgrades, with the promise of expedited processing and heightened protection against smuggling and illegal entry. Officials indicated that negotiations with Mexico, Canada, and several Central American states are already underway, and the administration expects formal agreements to be finalized before the end of the fiscal year.