US President Donald Trump reversed course on Tuesday on his intention to impose tariffs on ships transiting the Strait of Hormuz, having announced the plan on Monday, saying he would replace it with trade agreements instead.
Trump said his sudden decision to scrap the tariffs — which he had intended to impose amid renewed confrontations with Iran over the vital waterway — came "based on very productive conversations with leaders in the Middle East."
Trump wrote on Truth Social: "I have decided to replace the 20% United States recoupment tariffs with trade and investment agreements that Gulf countries will enter into with the United States."
The US president confirmed he would maintain a "full blockade" on ships heading to or coming from Iranian ports, but exclusively those sailing to and from those ports or carrying any cargo linked to Iran.
Trump said he believes no one should impose tariffs on transit through the Strait of Hormuz.
On Monday, Trump had announced that Washington had become the "guardian of the Strait of Hormuz" and that it would impose steep tariffs on shipping traffic to compensate the United States for the costs of protecting the key oil and gas passage.
Officials in the Trump administration had previously questioned the utility and legality of imposing tariffs on international waterways.
Secretary of State Marco Rubio said last month: "It's an international waterway. No country has the right to charge tariffs or taxes on an international waterway. That's what international law says."