Trump backs off Strait of Hormuz toll plan, calls for Gulf-funded investment in the United States

President Trump on Tuesday said he is backing away from a plan to charge a 20% toll on foreign ships using the Strait of Hormuz, a major chokepoint for global oil and shipping routes. The statement marks a reversal of a proposal that had drawn attention from regional governments and shipping interests because of its potential to affect energy transport costs and international maritime operations.

The president also said on Tuesday that he wants Gulf-funded investments in the United States, framing the change in approach as part of a broader effort to redirect Gulf economic engagement toward domestic projects rather than a toll-based mechanism tied to maritime traffic.

While the president did not detail in the report how the administration would restructure the concept once the toll proposal is dropped, the change suggests the policy debate may move toward other tools for securing the security of shipping lanes and for negotiating contributions from regional partners. The Strait of Hormuz is routinely cited by U.S. officials as a strategic passage whose continued access is important to U.S. and global economic stability.

Trump’s comments were reported as a “backtrack” from the earlier toll plan, indicating the administration will need to clarify the status of any draft policy, interagency review, or discussions that were underway around the 20% charge. Because a toll would have implications for international shipping practices and commercial contracting, any reversal would likely require follow-on guidance for carriers, insurers, and port operators.

The shift also places additional weight on the administration’s parallel emphasis on investment. The report’s description of seeking Gulf-funded investments in the United States ties the president’s new direction to economic rather than purely maritime-fee terms, which could alter how any U.S. requests of Gulf partners are defined, negotiated, and measured.

The next practical steps will depend on whether the administration formally withdraws the toll proposal, replaces it with a different framework, or confines it to discussions without moving forward with implementation. Until such details are made public, the shipping and energy industries are likely to treat the 20% toll concept as paused rather than fully resolved, especially for companies that had been tracking potential added costs tied to the strait’s passage.

In the near term, the administration’s messaging about Gulf-linked investment will also be tested by the scope of projects, the timing of funding commitments, and the policy mechanisms that would be used to convert partner support into measurable U.S. economic activity. For regional governments, the president’s change in approach may be viewed as a report that maritime charges are not the only lever on the table, though no alternate plan is described in the report.