Table of Contents
What Is the Jones Act?
The Jones Act—formally Section 27 of the Merchant Marine Act of 1920—is a fundamental U.S. maritime law that requires all goods transported by water between two U.S. ports to be carried on vessels that are American-built, American-owned, and American-crewed . The law was enacted after World War I to strengthen the domestic shipping industry, protect national security, and preserve maritime jobs .
Under the Jones Act:
- Ships must be built in U.S. shipyards
- Vessels must be owned by U.S. citizens
- Crews must be predominantly American
- Ships must fly the U.S. flag
While the law protects domestic maritime interests, critics argue it limits vessel availability and raises shipping costs—particularly affecting non-continental territories like Hawaii, Alaska, and Puerto Rico that depend heavily on imported goods .
Why Is the Trump Administration Considering a Waiver Now?
The administration is preparing a potential 30-day Jones Act waiver in response to surging fuel prices linked to the escalating Iran conflict . Key factors driving this consideration:
White House Press Secretary Karoline Leavitt confirmed the administration is “considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports,” adding that the action has not been finalized .
How Would a Waiver Affect Fuel Prices?
A temporary waiver would allow foreign-flagged vessels to transport crude oil, gasoline, diesel, and jet fuel between U.S. ports—currently prohibited under the Jones Act . This could:
- Increase tanker availability: The Gulf Coast refining hub could more easily supply East Coast and West Coast markets
- Reduce shipping costs: More vessels mean competitive pricing and faster deliveries
- Ease regional bottlenecks: Import-dependent regions would benefit from expanded supply options
However, analysts caution that the impact on retail gasoline prices would be modest:
- Patrick De Haan of GasBuddy estimates a waiver might slow price increases by around a nickel per gallon
- Alex Jacquez of the Groundwork Collaborative projects an effect of less than 2 cents per gallon
- The overall price trend remains dictated by Middle East developments, not domestic shipping costs
The primary driver of gas prices remains the cost of crude oil—not domestic shipping constraints .
Who Supports and Opposes the Waiver?
Supporters include:
- American Farm Bureau Federation: Warned of fertilizer price spikes for farmers due to Hormuz disruptions; urged Trump to waive the Jones Act
- Oil and shipping industries: Would benefit from expanded tanker availability
Opponents include:
- Seven U.S. maritime labor unions: Argue a waiver would “outsource American jobs” and “weaken the long-term resilience of the maritime industrial base” while doing “nothing to reduce energy & fuel prices”
- The unions note that U.S. vessels are available and waiving the law undermines core policy objectives
Historical Precedent
Jones Act waivers are rare and typically reserved for major supply disruptions. The most recent waivers came after 2017 hurricanes Harvey and Maria, when the Department of Homeland Security temporarily allowed foreign vessels to transport fuel to affected regions .
What Other Measures Are Being Taken?
The administration is pursuing multiple strategies to stabilize energy markets:
The Bottom Line
A Jones Act waiver could provide modest relief at the pump by easing domestic shipping bottlenecks—but it is not a silver bullet. Gasoline prices will continue to be driven primarily by global crude oil markets and the trajectory of the Iran conflict. The administration faces a delicate balance: addressing immediate supply concerns without undermining long-term maritime industrial capacity.
