Trump withdraws from 20% tariff on Strait of Hormuz/ Here's what he will replace the measure with

2026-07-14 17:41:00, Kosova & Bota CNA

Trump withdraws from 20% tariff on Strait of Hormuz/ Here's what he will

US President Donald Trump has backed away from imposing a 20% tariff on cargo passing through the Strait of Hormuz, announcing that the measure will be replaced with trade deals and investment from Gulf states in the United States.

Trump had stated the day before that the tariff was intended to cover the costs of the security that the US provides on this strategic maritime route for oil transportation.

The US president announced the news through a post on the "Truth Social" platform moments before his meeting at the White House with the Iraqi prime minister.

Full post:

Oil is flowing like never before, thanks to the amazing power of the United States Military. A special salute to Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and Commander of United States Central Command Admiral Brad Cooper. Thanks to them, and to all members of the most powerful military anywhere in the world, until the end, the Strait of Hormuz is open to all ship traffic except Iran, and that is because of their lying, violent, and malicious leadership, which is leading them down a path of total destruction. Therefore, we will have a full Blockade, but only on ships coming to and from Iranian ports, or carrying anything related to Iranian cargo. Based on very productive conversations with Middle Eastern leadership, I have decided to replace the 20% United States retaliatory tariff with trade and investment deals that the various Gulf States will make in the United States. These Investments will be massive, but, at the same time, extremely good for them and their future. As everyone knows, we have the largest dollar investment in the United States of any country in history, but these new investments will make that number even greater, and we will see factories, plants, and equipment pouring into the United States at historic levels, which will create millions of high-wage American jobs! America is WINNING again, winning like never before. The days of Iran killing hundreds of thousands of people, including 52,000 protesters, are over, and, most importantly, IRAN WILL NEVER HAVE A NUCLEAR WEAPON!

Meanwhile, Trump administration officials have previously expressed doubts about the enforceability and legality of such a fee on an international waterway. Secretary of State Marco Rubio stated last month that international law does not allow the imposition of fees in international waters.

"It is an international waterway. No country is allowed to impose tariffs or fees on an international waterway. This is determined by international law," Rubio said.

Vice President JD Vance also stressed that the administration's position was that international waterways should be free of tariffs. Trump himself had stated earlier in May that the US wants the Strait of Hormuz to remain open and tariff-free.