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By Ayo Kehinde
US President Donald Trump said on Tuesday that the Strait of Hormuz will remain open to all international commercial shipping, except ships traveling to and from Iranian ports, while announcing the withdrawal of his proposed 20% transit reimbursement fee in favor of new trade and investment deals with Gulf allies.
The announcement marked a significant reversal after Trump’s earlier proposal to impose a 20% tax on commercial cargo transiting the strategic waterway sparked concerns among governments, shipping companies and energy markets over its legality and potential impact on global trade.
Trump, on his Truth Social platform, said all ships will continue to enjoy free passage through the Strait of Hormuz, except those linked to Iran, which remain subject to a U.S.-imposed maritime blockade.
“I have decided to replace the 20% U.S. rebate fee with trade and investment agreements,” Trump said, arguing that agreements with Gulf partners would bring greater economic benefits to the United States than imposing a tax on international shipments.
The White House later confirmed that the administration had abandoned plans for the transit tax and would instead pursue expanded trade and investment partnerships with countries in the Gulf region.
Reuters reported that the decision followed consultations with regional allies and industry stakeholders who expressed concern about the potential consequences of taxing ships for passage through one of the world’s busiest shipping corridors.
While easing concerns about international shipping companies, Trump maintained that the United States would continue to impose what he described as a “total blockade” on ships traveling to and from Iranian ports.
The measure is part of Washington’s broader strategy to intensify economic and diplomatic pressure on Tehran following renewed military clashes in the Gulf and recent attacks involving commercial shipping.
U.S. officials said the restrictions will target ships directly engaged in trade with Iranian ports, while ships destined for other countries will continue to enjoy unrestricted passage through the Strait of Hormuz.
The narrow waterway between Iran and Oman carries nearly a fifth of the world’s seaborne crude oil and a significant share of global liquefied natural gas exports, making it one of the world’s most strategically important shipping routes.
Financial markets and shipping operators reacted nervously to Trump’s original proposal, warning that imposing transit fees could raise shipping costs, insurance premiums and global energy prices.
Oil prices initially rose following the announcement of the proposed refund fee, then moderated after Trump revealed the tax would be replaced with trade and investment agreements.
Industry analysts said the latest policy would likely reassure international shipping operators while reducing trade uncertainty
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