Washington, D.C: US President Donald Trump has announced that the proposed 20% reimbursement fee linked to shipping through the Strait of Hormuz will be replaced with trade and investment agreements involving Gulf nations.
In a post, Trump said, “Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States.”
The decision marks a change from his earlier proposal to impose a fee on ships using the strategic waterway. Instead, Trump said Gulf countries will make significant investments in the United States to support factories, manufacturing and job creation while strengthening economic ties.
Trump also credited the US military with keeping the Strait of Hormuz open during the recent conflict with Iran. In a post on Truth Social, he described it as the “awesome Power of the United States Military.”
The announcement follows discussions with Middle East leaders and signals a shift from transit-related charges to investment-focused cooperation between the United States and Gulf nations.
