The Trump administration is considering extending a 60-day waiver of the Jones Act, a century-old maritime law, to mitigate rising fuel prices triggered by the ongoing Iran war. The waiver, issued on March 18, has allowed foreign-flagged vessels to transport oil between U.S. ports, significantly increasing domestic oil shipments and reducing costs.
Impact on Fuel Supply
Since the waiver took effect, 40 foreign-flagged tankers have delivered approximately 9 million barrels of oil across U.S. ports, from California to Alaska. This has increased the de facto fleet by 70%, easing logistical bottlenecks and lowering fuel prices. Notably, Alaska has benefited from the waiver, with imported jet fuel meeting roughly half of the state's average monthly consumption.
'As long as the Iranians are a threat and raising fuel prices, the president would like to keep the waiver in place for as long as is necessary,' said a Trump adviser familiar with the discussions.
Debate Over the Jones Act
The Jones Act, enacted in 1920, requires goods shipped between U.S. ports to be carried on American-built, American-owned, and American-crewed vessels. While protectionists argue the law safeguards U.S. jobs and shipbuilding industries, libertarians criticize it as a costly relic that inflates prices for consumers.
The Hudson Institute warned that waiving the act could harm American shipping and shipbuilding industries, displacing tens of thousands of workers. Conversely, the Cato Institute has labeled the law 'archaic' and 'burdensome,' arguing that its costs outweigh its benefits.
White House spokesperson Taylor Rogers confirmed no final decision has been made but emphasized the waiver's success in increasing fuel supply and stabilizing prices. The administration continues to evaluate the waiver's extension as geopolitical tensions with Iran persist.