January 1, Trump DITCHES Hormuz Tariff for Something MUCH Bigger

Wyatt’s Take

• Trump just scrapped his 20% Hormuz toll plan and replaced it with massive trade deals that promise millions of high-paying American jobs
• Gulf nations are now entering direct investment agreements with the U.S. instead of paying shipping fees
• This is classic Art of the Deal—threaten tariffs, negotiate better terms, bring home jobs for working Americans

President Donald Trump announced a major shift in his Middle East strategy, replacing his proposed 20% fee on vessels moving through the Strait of Hormuz with what he’s calling comprehensive trade and investment deals with Gulf nations.

The change came quickly after the initial tariff announcement. Instead of collecting tolls on ships passing through one of the world’s busiest oil shipping lanes, Trump secured commitments for direct investment in American industries and job creation.

The Strait of Hormuz is open to all vessels seeking to lawfully transit the international waterway. U.S. forces are positioned and prepared to ensure that freedom of navigation remains available despite unwarranted Iranian aggression, harassment, threats, and arbitrary… pic.twitter.com/FS3TUBOZEj

 — U.S. Central Command (@CENTCOM) July 12, 2026

The president framed the pivot as a win for American workers, promising the deals would generate millions of high-paying jobs on U.S. soil. Gulf states will now be funneling money directly into American manufacturing, energy production, and infrastructure rather than paying transit fees.

Trump has long criticized previous administrations for allowing foreign nations to profit from U.S. military protection of international shipping lanes without adequate compensation. The Strait of Hormuz, guarded by American naval forces, sees roughly 20% of global oil shipments pass through annually.

The original 20% toll proposal drew swift reaction from both allies and adversaries in the region. Gulf monarchies, which rely heavily on oil exports through the strait, pushed back against the fee structure.

Rather than dig in on the toll concept, Trump shifted to direct negotiation—a pattern that defined his first term and continues to shape his approach to international economics.

Details on the specific trade and investment commitments remain limited. The White House has not yet released figures on projected job numbers or timelines for implementation.

But the president’s supporters are already pointing to the move as evidence of Trump’s deal-making prowess. The strategy of using tariff threats as leverage to secure better terms for American workers has been a cornerstone of his economic platform since 2016.

Why It Matters

This is how you negotiate for regular folks. You don’t just accept the way things have always been—with America protecting the world’s oil supply while our own workers get left behind. Trump threatened the tariff, Gulf nations realized he was serious, and now we’re getting investment and jobs instead of pocket change from shipping fees. That’s putting America first in action, not just words.