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Your problem seems to be that you are residing in the U.S
I'm in the US and don't have to pay to do this. They tried to charge for it like 10 years ago but I've never seen it attempted since.
Sounds like it's OPs carrier.
This is only the case if you buy a phone from your carrier (that they've customized to disable hotspot without you paying extra) instead of from a phone manufacturer directly. Carriers doing that isn't as common outside the US, but it's not an inherently location-based thing. I'm in the US and (due to buying phones from the manufacturer) I can use mobile hotspot without paying any extra even though my carrier would normally require that.
I'm a little late, but I have an unlocked s20+, and I can't use tethering either. I've tried on numerous networks. I have to use workarounds. From my research my phone is not the only one that has this issue. Apparently oneplus and google phones can do it though.
When I was living in the UK 10 years ago, the 3 mobile company actually blocked anyone from tethering on their network, not sure if this is still the case. They had a banging unlimited data package that was very popular, but they realised pretty quickly that unlimited data + tethering was a recipe for financial ruin so they tightened the noose and stopped it.
Not just living in the US. I’m thinking they’re on some legacy plan where just using mobile hotspots were extra.
On my kind of old t-mobile plan, I can use hotspot. And when I was a grandfathered Verizon plan I could use it too. Same with the MVNO I played around with a few months ago.
There are limits though, which is BS. But just using it to get through a temporary residential internet outage is included in a lot of plans in the US.