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US to Waive Jones Act in Bid to Tame Spiraling Fuel Prices
Rule That Requires US Ships to Transport Goods Between Ports Would Get 30-Day Exemption
The Trump administration plans to waive a century-old maritime law that requires American ships be used to transport goods between U.S. ports as it seeks to blunt surging oil and gasoline prices, according to people familiar with the matter.
The 30-day exemption, which is still being developed, is set to apply broadly to vessels moving energy commodities and fertilizer among U.S. ports, the people said. That would enable generally cheaper foreign tankers to move those goods — including Gulf Coast oil to refineries on the East Coast and fuel from the region to more populous areas.
“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 U.S. ports,” White House Press Secretary Karoline Leavitt said in a statement. “This action has not been finalized.”
The plan comes as President Donald Trump considers multiple options to stem the dramatic rise in crude and gasolineprices amid the war in Iran. On March 11, the administration announced it wouldrelease 172 million barrelsof crude from the Strategic Petroleum Reserve. Overall, countries are coordinating to release 400 million barrels from their stockpiles.
U.S. gasoline futures pared gains after the news. Waiving the Jones Act could save East Coast motorists roughly 10 cents a gallon, according to a 2022 JP Morgan Chase & Co. estimate.
While the government has temporarily lifted U.S. shipping requirements to combat fuel shortages after major storms, doing it can be politically fraught. The Jones Act is championed by some of the nation’s biggest shipbuilders and vessel operators, as well as their allies on Capitol Hill.
BREAKING: White House considering temporary Jones Act waiver to keep shipments moving to U.S. ports, Leavitt tells Fox News — Fox News (@FoxNews)
On March 12, a White House official said the Trump administration can assure that the move will not impact American shipbuilding.
The U.S. last waived the Jones Act in October 2022 for a tanker heading to Puerto Rico to deliver supplies follow Hurricane Fiona.
The Biden administration also temporarily issued an exemption for refiner Valero Energy Corp. following a cyberattack on a major East Coast fuel pipeline in 2021.
