The White House is considering extending a temporary waiver of the Jones Act, a move designed to stabilize domestic oil markets following disruptions from the Iran war. President Trump initially suspended the 1920 maritime law for 60 days in mid-March to ease fuel price pressures. Officials argue the policy has already increased shipping capacity and lowered costs.
Known formally as the Merchant Marine Act, the Jones Act mandates that cargo transported between U.S. ports must be carried on American-built, -owned, and -crewed vessels. This restriction creates a limited domestic fleet, which typically raises shipping expenses. The administration's waiver allows foreign-flagged tankers to move oil domestically, effectively bypassing the law's requirements.
According to White House data provided to Axios, the waiver has enabled 40 foreign tankers to deliver oil between ports from California to Florida. This influx has increased the de facto shipping fleet by 70%. These vessels have moved 9 million barrels of American oil so far, with notable impacts in Alaska where imported jet fuel under the waiver equals half the state's average monthly consumption.
An extension would aim to prevent a price spike when the current waiver expires. The policy directly affects oil refiners, shippers, and consumers across coastal states. Its continuation would represent a significant, though temporary, shift in U.S. maritime and energy policy.
Libertarian critics and some economists have long opposed the Jones Act as a protectionist measure that stifles competition. They view the waiver as a validation of their arguments for permanent repeal, not just a temporary crisis measure.