Trump Reverses Plan to Impose 20% Toll on Strait of Hormuz Shipments After International Backlash

US President Donald Trump initially announced a 20 percent tariff on all shipments passing through the Strait of Hormuz, sparking international alarm. Within less than 24 hours, Trump reversed the decision. According to CNN, the announcement caught US allies and senior Washington officials by surprise. White House advisers scrambled to assess the feasibility of implementing such a toll system. Security and diplomatic advisors had warned Trump for months that charging fees in an international strait would violate international law and could legitimize similar Iranian plans, which the US recently deemed illegal.

US Secretary of State Marco Rubio had stated weeks earlier that no country is authorized to impose tolls in international straits. Following Trump’s announcement, leaders from Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar urgently contacted Trump, expressing concerns about rising oil prices and escalating regional tensions. The next morning, Trump announced a complete withdrawal of the toll plan. Instead, he claimed Gulf leaders offered a preferable alternative involving massive investments and unprecedented trade contracts benefiting the US economy.

Iranian Foreign Minister Abbas Araghchi quickly responded on Twitter, sarcastically agreeing with Trump that those securing the strait deserve compensation, but suggesting 20 percent was excessive. Despite canceling the toll, Trump emphasized that a tough stance on Tehran remains, declaring a full naval blockade to prevent Iranian vessels or cargo ships from transiting the strait. The situation in the Gulf remains tense, with ongoing US strikes and growing impatience among Emirates over Iran’s influence in the Strait of Hormuz.