Donald Trump backs away from 20 per cent fee plan on Strait of Hormuz
US President Donald Trump has retracted his proposal to impose a 20 percent fee on cargo ships using the Strait of Hormuz. Instead, he plans to seek increased investment from Gulf partners in exchange for continued US protection of the waterway.
Why it matters
The reversal reflects the complexities of international trade policy and the administration's reliance on diplomatic leverage over direct taxation.
— 6:08am , first published 1:54am
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Share A A A Follow our live coverage of the latest military strikes across the Middle East here. Washington: Donald Trump has abandoned his plan to charge ships a fee to use the Strait of Hormuz, but says the United States will still protect the waterway in exchange for additional investment from its Gulf partners.
The US president reversed course following phone calls from “kings and emirs” in the Gulf, he said, 24 hours after he floated the idea of taking control of the strait and charging a toll of 20 per cent of cargo value.
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