What to know about the Jones Act waiver extension
The Trump administration said it is extending a waiver of the Jones Act for another 90 days as the war in Iran continues to affect energy markets and supply chains. The decision comes after a prior move in March to suspend Jones Act requirements for 60 days, as White House officials tied the policy shift to efforts to address steep oil prices and cargo disruptions.
White House assistant press secretary Taylor Rogers said in a post on X that President Donald Trump issued a 90-day extension to the Jones Act waiver. The Associated Press report said Rogers also pointed to new data compiled since the initial waiver was issued, saying it showed more supply could reach U.S. ports faster.
What the Jones Act is
The Jones Act’s official name is the Merchant Marine Act of 1920, passed by Congress in 1920 and sponsored by Sen. Wesley Jones of Washington state. In the domestic trade between U.S. ports, the law generally requires that goods be carried on U.S.-flagged vessels.
Among other things, the Jones Act mandates that ships carrying cargo and passengers between U.S. ports must be built in the United States and owned by Americans, effectively barring foreign-flagged ships from that domestic trade. The vessels are also required to carry U.S. crews, and the law is framed as a way to ensure the United States maintains its own merchant fleet.
The U.S. Maritime Administration notes that the act can be waived in the “interest of national defense,” either through the Homeland Security or Defense Department.
Why waive it again
The Associated Press report said oil prices have spiked and swung rapidly since the start of the Iran war, with major disruptions to tanker movement in the Strait of Hormuz. It said many commercial ships have also been stalled at sea or faced attacks, and that the resulting pressure is pushing up prices for businesses and consumers worldwide.
As an example of the market volatility described in the report, it said Brent crude for June delivery swung between roughly $103 and $107 and was down less than 0.1% at $105.04 at the time of reporting. The report also said Brent for July delivery fell 0.4% to $98.96.
In the United States, AAA’s national average for regular gasoline reached $4.06 a gallon Friday, the report said, up about $1.08 from before the war.
How the waiver could affect gas prices
The report said analysts and industry groups argue the Jones Act waiver is often blamed for making gasoline, particularly, more expensive, but they also said the impact on consumer fuel bills may be limited. The Center for American Progress, in an estimate made in March, projected that waiving the Jones Act would decrease East Coast gas prices by about 3 cents while potentially raising costs on the Gulf Coast.
That same estimate said the waiver would sideline American shipbuilders and workers, and would allow the oil industry to continue to profit from high prices while reducing transport costs, according to the Associated Press report.
Even with steps aimed at improving access to U.S. ports, analysts cited in the report said the ability of new supply to flow to consumers can be constrained by factors such as how quickly refineries can use additional crude and how long it takes for higher-priced inputs to translate into retail prices—particularly if disruptions tied to the Iran war persist.
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