Trump Backs Away From Controversial Order

President Donald Trump announced Tuesday that he is abandoning his proposal to impose a 20% fee on ships traveling through the Strait of Hormuz, saying Gulf nations have instead agreed to pursue major trade and investment commitments with the United States.

The change comes one day after Trump’s proposed shipping toll drew criticism from international officials and prompted questions from U.S. allies in the Gulf region. The United Nations’ maritime agency reportedly argued the proposed fee would violate international law, while regional governments sought clarification from the White House.

In a post on Truth Social, Trump said he reached the decision after discussions with leaders across the Middle East. Rather than charging ships that pass through the strategic waterway, he said Gulf nations will increase their economic investments in the United States through new trade and investment agreements.

Speaking to reporters during a meeting with Iraq’s prime minister, Trump said several Gulf leaders personally urged him not to move forward with the toll proposal. He said he opposes charging fees for international waterways but argued that the United States should be compensated for helping protect one of the world’s most important shipping routes.

“I don’t think anybody should charge a fee for the Strait or any other strait in the world,” Trump said. He added that expanded investment from Gulf nations represents a better solution than imposing shipping charges.

According to regional officials, Trump’s original announcement caught several Gulf governments off guard. Officials from multiple countries reportedly contacted the White House seeking additional information about how the proposal would be implemented. During a phone call Tuesday with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, the issue of the Strait of Hormuz was also discussed.

Before the recent tensions with Iran, Saudi Arabia, Qatar, the United Arab Emirates, and Bahrain had already announced plans to invest more than $2 trillion in the United States over the coming years. Trump said the new agreements under discussion would increase that total even further.

Trump’s announcement came just hours before a U.S. naval blockade targeting Iran was scheduled to take effect and as military tensions between the United States and Iran continued in the Strait of Hormuz. In a separate Truth Social post, Trump said the waterway remains open to international shipping except for Iran, while sharply criticizing the country’s leadership.