Gulf allies’ backroom pressure campaign forces Trump to reverse tax on Strait of Hormuz

Published July 14, 2026 1:50pm ET | Updated July 14, 2026 1:50pm ET



President Donald Trump’s proposal to implement a 20% tax on goods transiting the Strait of Hormuz was met with backroom pressure from the U.S.’s Gulf allies, contributing to the White House’s reversal just a day later.

Trump’s declaration on Monday that the United States would be “known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,'” and in a process that would begin “immediately,” would be reimbursed “at the rate of 20% on all cargo shipped,” came under immediate criticism. No official criticism came from the Gulf, however, and by Tuesday, the only public comment in the region came from Iran’s foreign ministry.

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