The Trump administration is considering temporarily waiving the century-old Jones Act in an effort to ease supply disruptions and rising fuel prices linked to the ongoing conflict involving Iran in the Middle East.
White House Press Secretary Karoline Leavitt said the administration is evaluating the move to ensure that vital energy and agricultural products can move more freely between US ports.
“In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to US ports,” Leavitt said in a statement.
She added that the decision had not yet been finalized.
According to sources familiar with the discussions who spoke to Reuters, an announcement could potentially be made soon as the government looks for ways to stabilize energy supplies and control rising fuel prices.
What Is the Jones Act?
The Jones Act, officially known as the Merchant Marine Act of 1920, requires that goods transported between US ports must be carried on ships that meet strict criteria.
Under the law, vessels moving cargo between domestic ports must be:
- Built in the United States
- Owned primarily by US companies
- Registered under the US flag
- Crewed mainly by American citizens
While the law was originally designed to protect the US maritime industry and strengthen National Security, critics say it significantly limits the number of ships available for domestic transport.
As a result, shipping costs between US ports are often higher than international shipping rates.
| Jones Act Requirements | Purpose |
|---|---|
| US-built vessels | Support domestic shipbuilding industry |
| US-owned ships | Strengthen national economic security |
| US-flag registration | Maintain regulatory oversight |
| American crews | Support maritime employment |
How a Waiver Could Affect Fuel Prices
If the Jones Act is temporarily waived, foreign-flagged ships would be allowed to transport goods between US ports.
This could increase the number of vessels available to move petroleum products and other essential supplies across the country.
Economists say the change could reduce shipping costs and improve supply chains, potentially helping to stabilize gasoline and diesel prices.
The policy is being considered at a time when Global energy markets are experiencing volatility due to geopolitical tensions in the Middle East.
The ongoing conflict involving Iran has raised fears of disruptions to oil shipments through key routes such as the Strait of Hormuz, a critical channel for global energy supplies.
Fuel Prices Rising Across the United States
Higher global oil prices have already started to affect fuel costs for American consumers.
According to data from the motorist association AAA, the national average price of gasoline recently reached $3.60 per gallon — the highest level since May 2024.
Diesel prices have also surged, reaching approximately $4.89 per gallon, the highest since December 2022.
Rising fuel prices carry significant political risks for the administration, especially as voters remain sensitive to inflation and living costs ahead of upcoming midterm Elections.
Republicans have frequently argued that their energy policies would keep fuel affordable, meaning sustained price increases could create political challenges.
| Recent US Fuel Prices | Latest Average |
|---|---|
| Gasoline | $3.60 per gallon |
| Diesel | $4.89 per gallon |
| Previous Gasoline High | May 2024 |
| Previous Diesel High | December 2022 |
Pressure From Agriculture and Industry Groups
Industry groups have also urged the administration to consider relaxing shipping restrictions to avoid supply shortages.
The American Farm Bureau Federation, the largest US agricultural lobbying organization, recently called on the government to waive the Jones Act.
In a letter dated March 9, the group warned that disruptions to global shipping — particularly through the Strait of Hormuz — could drive up fertilizer prices and create additional costs for farmers.
Allowing foreign ships to transport goods between US ports could increase domestic shipping capacity and prevent supply bottlenecks.
Jones Act Waivers Are Rare
Temporary waivers of the Jones Act are uncommon and are usually granted only during major emergencies or supply crises.
The United States government has issued waivers in the past following natural disasters that disrupted supply chains.
For example, the Department of Homeland Security granted temporary exemptions after Hurricane Harvey and Hurricane Maria in 2017.
Those waivers allowed foreign vessels to transport petroleum and other supplies between US ports to help speed relief efforts and prevent shortages in affected regions.
Decision Still Pending
While discussions about a possible waiver are ongoing, the White House has emphasized that no final decision has been made.
Officials say the administration continues to monitor global energy markets and domestic supply conditions as tensions in the Middle East influence oil prices and shipping routes.
Any decision to temporarily suspend the Jones Act would likely aim to stabilize fuel markets and protect US consumers from further price increases.
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