Trump backs down from 20% fee on Hormuz Strait; replaces with trade deals

U.S. President Donald Trump announced on Tuesday, July 14, that he is abandoning his earlier plan to impose a 20% fee on all cargo passing through the Strait of Hormuz. Instead, Washington will pursue trade and investment deals with Persian Gulf countries.

In a post on his platform Truth Social, Trump said the decision came after productive talks with Middle Eastern governments. Just a day earlier, he had stated that the U.S. would become the guardians of the strait and charge for its protection, citing costs and risks to personnel.

The president also confirmed the resumption of a blockade on Iran, barring Iranian vessels and their clients from entering or exiting the waterway. Other nations would be allowed free passage. U.S. Central Command said the blockade would restart Tuesday at 23:00 Latvian time.

Notably, the U.S. and Iran renewed hostilities last week, effectively ending the April ceasefire, with most clashes occurring around the Strait of Hormuz.