President Donald Trump on Tuesday reversed his decision to impose a 20% reimbursement fee on cargo passing through the Strait of Hormuz, saying he was persuaded by Gulf leaders to instead accept expanded trade and investment in the United States.

Trump had announced Monday that commercial cargo transiting the strategic waterway would be subject to a 20% fee to help cover the cost of U.S. military operations protecting shipping in the strait.

However, shortly before meeting Iraqi Prime Minister Mohammed Shia’ al-Sudani at the White House, Trump announced a change in policy.

“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,” Trump wrote on Truth Social.

Speaking later from the Oval Office, Trump said the decision came after direct appeals from Gulf leaders.

“I was called by different people, different countries, kings and emirs and all the people that we all know and love,” Trump said. “And they said we’d love to do it a different way.”

Trump defended his original proposal, arguing that the charge was intended as reimbursement for the security the United States provides in the Strait of Hormuz rather than a traditional toll.

“It was never fair to me that we would be guarding the strait when we basically don’t take anything,” he said.

He added that the Gulf nations’ proposal to increase investment in the United States ultimately proved to be a better solution.

“That was very satisfactory to me. I think it’s actually much better,” Trump said.

The reversal brings Trump’s position back in line with previous statements from senior administration officials, who had questioned whether such a fee would be legal under international law.

Secretary of State Marco Rubio said last month, “It’s an international waterway. No country is allowed to charge tolls or fees on an international waterway. That’s existing international law.”

Vice President JD Vance also previously stated that the administration’s position is that “international waterways should be free of tolls.”

Trump himself had expressed a similar view in May, saying, “We want it open. We want it free. We don’t want tolls. It’s international. It’s an international waterway.”

The announcement comes as the United States continues military operations aimed at protecting commercial shipping in the Strait of Hormuz amid ongoing hostilities with Iran.

(YWN World Headquarters – NYC)