President Donald Trump has temporarily waived the Jones Act—a law in force since 1920—to lower the cost of transporting oil, gas, and other commodities within the United States, as energy prices rise amid the war with Iran.
On Wednesday, March 18, he authorized foreign-flagged vessels to carry a broad range of cargo between US ports for 60 days. The administration argues that the move will facilitate the delivery of critical energy resources and help prevent disruptions that could affect military operations.
“President Trump’s decision to implement a 60-day waiver of the Jones Act is another step aimed at mitigating short-term disruptions in the oil market as US armed forces continue to carry out the objectives of Operation Epic Fury,” White House Press Secretary Karoline Leavitt said. “The Administration remains committed to strengthening critical supply chains.”
The Jones Act requires that shipments between US ports be carried exclusively on vessels that are US-flagged, US-built, and owned by American companies. The temporary waiver applies to a range of cargoes, including coal, crude oil, refined petroleum products, natural gas and its derivatives, fertilizers, as well as goods for which refined petroleum products are a key input.
Access to cheaper foreign tankers is expected to lower logistics costs—particularly for shipping oil from the Gulf Coast to refineries on the East Coast, as well as gasoline and diesel supplies to the US Northeast. According to JPMorgan (2022), this could reduce fuel prices by roughly 10 cents per gallon.
“The Jones Act effectively prevents gasoline from being shipped by barge from the Houston Ship Channel to the Port of New York and other destinations along the East Coast, because it makes such transport prohibitively expensive,” said James Lucier of Capital Alpha Partners. “As a result, low-cost gasoline produced from US crude—and that could otherwise be shipped from Houston to New York—is instead exported to Mexico.”
The measure forms part of a broader set of steps to contain prices amid a war that has effectively led to the closure of the Strait of Hormuz—through which around 15 million barrels of oil pass each day—and triggered turbulence across global markets.
Even so, analysts expect the overall impact to be limited given the scale of the global disruption. The International Energy Agency has described the situation as “the largest supply shock in the history of the global oil market.”
The relaxation of requirements may also lower the cost of nitrogen fertilizers transported along the Mississippi River, though some experts считают the move too late to materially affect the spring planting season.
Rising fuel prices are intensifying political pressure on Trump, as they directly shape voters’ perceptions of inflation. This creates risks for the president and the Republican Party ahead of the November midterm elections.
The administration has also announced the release of 172 million barrels of oil from the US Strategic Petroleum Reserve as part of a global total of 400 million barrels, partially eased sanctions on Russian oil, plans to deploy US Navy escorts for tankers transiting the Strait of Hormuz, and is preparing an insurance backstop program to reduce costs.
Similar temporary waivers have been used before—for example, in October 2022, Joe Biden authorized shipments to Puerto Rico following Hurricane Fiona.
The Jones Act remains a subject of dispute: it is backed by shipbuilding companies and their allies in Congress, who oppose even temporary exemptions. The White House stresses that the current measure is temporary and will not undermine the US shipbuilding industry.
According to administration officials, the decision is intended to ensure uninterrupted and cost-effective deliveries of energy resources to military bases and facilities, including the supply of airfields, which is regarded as a critical component of national security.