White House press secretary Karoline Leavitt said on Thursday (local time) that the Trump administration is considering waiving the Jones Act for a short time to ensure that energy and agricultural products can move freely between US ports, Reuters reported.
The development comes weeks after the US and Israel launched strikes against Iran, which retaliated by closing the Strait of Hormuz, a key waterway that accounts for about a fifth of the world’s oil supplies. The Trump administration aims to combat supply disruptions caused by the conflict in the Middle East.
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In a statement, Leavitt said, “In the interest of national defense, the White House is considering waiving the Jones Act for a limited time to ensure that vital energy products and agricultural supplies flow freely to America’s ports.” However, she added that the decision is not final yet.
What is Jones’s Law?
The Jones Act of 1920, also known as the Merchant Marine Act, is an obscure regulation that mandates that goods transported from one U.S. port to another must be carried on a ship that is built in the U.S., flies the U.S. flag and is mostly U.S.-owned, CNBC reported.
The act was intended to encourage the development of a strong US-owned commercial shipping industry, an issue that came to the fore during World War I, when naval blockades highlighted the strategic link between maritime commerce and military conflict.
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The report added that one provision of the law states that cargo transported by sea through the US must be carried on vessels that are built in the US, owned by US citizens and operated by crews composed of US citizens or legal permanent residents. The rationale for this requirement was that during the war the country would have a reliable fleet of American-built and American-operated ships that could support trade and be used for national needs when needed.
The US is trying to fight against a sharp rise in fuel prices
Amid tensions in the Middle East, Reuters cited sources as saying that dropping the Jones Act would allow Washington to combat rising fuel prices and other disruptions. Additionally, it would also temporarily allow foreign ships to transport fuel between US ports, potentially reducing shipping costs and speeding up deliveries.
High gas prices pose significant political risks for President Donald Trump and his fellow Republicans, who have long argued that their energy policies will keep fuel affordable for Americans.
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But a sustained rise in gas prices is likely to undermine that Republican message and could fuel criticism from Democrats that the current administration has failed to protect American households from higher costs. This comes at a time when voters are already sensitive to inflation ahead of the November midterms.
On Thursday, US national average retail gas prices touched $3.60 a gallon for the first time since May 2024, when diesel prices touched $4.89 a gallon. Earlier, prices climbed to a record high in December 2022, Reuters reported, citing data from motorists’ association AAA.
Trump has called for a waiver of the Jones Act
On March 9, the American Farm Bureau Federation, the nation’s largest farm lobby, asked Trump in a letter to drop the bill to help improve domestic shipping capacity. The association warned Trump that fertilizer prices could also shoot up and cause problems for farmers.
In the past, the US has waived the Jones Act under specific conditions, usually during major supply shortages. The most recent exemptions were issued in 2017 after hurricanes such as Hurricane Harvey and Hurricane Maria. At the time, the Department of Homeland Security temporarily allowed foreign-flagged ships to transport fuel between U.S. ports to help ease shortages and expedite deliveries to affected areas.
