Donald Trump has abandoned plans to hold the next G7 meeting at his own golf resort in Florida.
In a rare u-turn, the US president said his administration will "immediately" begin searching for another site.
It came after sharp criticism of the initial decision to host world leaders at Trump National Doral in Miami next summer.
Democratic senator and presidential candidate Elizabeth Warren described it as "corruption, plain and simple".
Some Republicans had also criticised the administration offering such a large contract to one of the president's own businesses.
On Saturday night, President Trump sent a series of tweets confirming that the decision would be reversed.
He said: "I thought I was doing something very good for our Country by using Trump National Doral, in Miami, for hosting the G-7 Leaders.
"It is big, grand, on hundreds of acres, next to Miami International Airport, has tremendous ballrooms & meeting rooms, and each delegation would have its own 50 to 70 unit building."
He claimed he would have been willing to host the summit at "no profit or, if legally permissible, zero cost to the USA."
However, he accused the media and the Democratic party of going "crazy" over the decision.
"Best physical facility"
The White House had previously defended the decision to host world leaders at the resort.
Chief of staff Mick Mulvaney told reporters Doral was "far and away... the best physical facility for this meeting".
He suggested: "They’re doing this at cost. As a result, it’s actually going to be dramatically cheaper for us to do it at Doral compared to other final sites that we had."
Questioned over whether the move was in violation of ethics rules, Mr Mulvaney added: "[President Trump would] be criticised regardless of what he chose to do.
"But, no, there’s no issue here on him profiting from this in any way, shape, or form."