President Trump reversed course Tuesday on his controversial demand for a 20% toll on ships passing through the Strait of Hormuz, replacing it with a pledge that Gulf states will funnel major new investments into the United States instead.
The sudden shift came after his Monday announcement of the maritime fee sparked immediate international backlash. The UN maritime agency deemed the proposal illegal, while Gulf allies expressed shock at the unilateral demand.
Trump announced the reversal on Truth Social, stating: "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."
The timing raised questions about what prompted the quick turnaround. Two Gulf officials revealed that countries in the region were caught off guard by Monday's toll announcement and sought clarifications from White House counterparts. On Tuesday, Trump spoke with Qatari Emir Sheikh Tamim bin Hamad Al Thani, ostensibly to offer condolences over the death of his father, though the Hormuz issue also surfaced during that call.
Trump framed the new approach as a win, noting that Saudi Arabia, Qatar, the UAE, and Bahrain had already committed to investing more than $2 trillion in the U.S. over coming years even before any recent negotiations. He suggested the Gulf states would now commit "new Investments" that "will make that Number even larger."
The reversal also coincided with escalating military tensions. Trump issued the statement hours before a U.S. naval blockade on Iran was set to take effect, and as the U.S. and Iran exchanged fire in the strait for a fourth consecutive day. Trump characterized the waterway as remaining "open to ALL Ship traffic except for Iran," citing what he called their "lying, violent, malicious leadership."
The about-face underscored the complications of Trump's pressure campaign against Iran. His initial toll demand had awkwardly validated Iran's own longstanding argument for collecting service fees in the strait, a position Trump had previously rejected.
Author James Rodriguez: "A toll grab that lasted 24 hours is not a negotiating win, no matter how Trump spins it to his base."
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