Jones Act Waiver Extended Amid Energy Crisis

The Trump administration has decided to extend the waiver of the Jones Act for another 90 days. This move is aimed at reducing fuel prices and facilitating the shipment of oil, fuel, and fertilizer across the nation, particularly in light of the ongoing conflict in Iran, which has now entered its second month.

Originally set to end on May 17, this waiver will now allow foreign vessels to operate in U.S. ports until mid-August.

“This waiver extension provides both certainty and stability for the U.S. and global economies,” said Taylor Rogers, a spokesperson for the White House. “The Trump administration has taken several actions to mitigate short-term disruptions to the energy markets, and this extension will help ensure vital energy products, industrial materials, and agricultural necessities are maintained.”

Rogers highlighted that since the waiver was implemented on March 18, there has been an increase in supply reaching U.S. ports.

Motivated by rising fuel costs and the strategic closure of the Strait of Hormuz, the administration made this decision to stabilize the energy market.

At that time, the global energy situation was precarious, with Brent crude prices around $105 per barrel and West Texas Intermediate (WTI) hitting $95, while the national average for gasoline surged to $4 per gallon.

In response to these challenges, the president initiated a temporary waiver of the Jones Act—a federal law from 1920 that generally requires that goods transported between U.S. ports be carried on American-built, owned, and flagged vessels.

This exemption applies to various energy-related commodities like crude oil, coal, natural gas, refined petroleum products, and fertilizers.

Government data indicates that the waiver, first enacted in March, has already enabled the domestic movement of goods such as renewable diesel, ammonia, ethanol, and gasoline to states like California, Florida, Pennsylvania, and South Carolina.

A White House official noted that, considering the ongoing market instability, the Trump administration is extending the waiver ahead of its scheduled expiration. This proactive measure aims to give the maritime industry adequate time to prepare vessel capacity to ensure critical energy supplies reach their destinations without delays.