White House Press Secretary Karoline Leavitt on Thursday (local time) said that the Trump administration is considering waiving the Jones Act for a brief period to ensure that energy and agricultural shipments can move freely between US ports, reuters reported.
The development comes weeks after the US and Israel launched strikes on Iran, which, in retaliation, has closed the Strait of Hormuz, a key waterway, accounting for roughly one-fifth of the world’s oil supply. The Trump administration aims to combat these supply-related disruptions caused by the conflict in the Middle East.
In a statement, Leavitt said, “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.” However, she added that the decision has not been finalized yet.
What is the Jones Act?
The Jones Act of 1920, also known as the Merchant Marine Act, is an obscure regulation that mandates that goods shipped from one American port to another must be transported on a ship that is US-built, US-flagged, and mostly US-owned, CNBC reported.
The act aimed to support the development of a strong US-owned commercial shipping sector, an issue that gained prominence during World War I, when naval blockades pointed out the strategic connection between maritime trade and military conflict.
The report added that one provision of this act states that cargo transported by sea across the US must be carried on vessels that are built in the US, owned by American citizens, and operated by crews made up of US citizens or legal permanent residents. The reasoning behind this requirement was that, during wartime, the country would have a dependable fleet of American-built and American-operated ships that could support trade and, if necessary, be used for national needs.
US tries to combat fuel price spike
Amid the tensions in the Middle East, reuters reported, citing sources, that waiving the Jones Act would allow Washington to combat increasing fuel prices and other disruptions. Additionally, it would also temporarily allow foreign ships to carry fuel between US ports, and could potentially lower shipping costs and speed up deliveries.
High gas prices carry significant political risks for President Donald Trump and his fellow Republicans, who have long argued that their energy policies would keep the fuel affordable for Americans.
But a sustained rise in gas prices is likely to undermine that message from Republicans and can fuel criticism from Democrats that the current administration has been unsuccessful in protecting American households from higher costs. This comes at a time when voters are already sensitive to inflation ahead of the November midterms.
On Thursday, the 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. Previously, the prices touched a record high in December 2022, reuters reported, citing data from AAA, the motorist association.
Trump urged to waive Jones Act
On March 9, the American Farm Bureau Federation, the largest farm lobby in the country, asked Trump in a letter to waive the act to help improve domestic transportation capacity. The association has warned Trump that the fertilizer prices could also spike and cause disruptions for farmers.
In the past, the US has waived the Jones Act under specific conditions, which are usually during major supply disruptions. The most recent waivers 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 carry fuel between US ports to help ease shortages and speed up deliveries to affected areas.
