President Trump issued a temporary waiver for the Jones Act on Wednesday, according to reports, making the transport of seaborne cargo around the US cheaper as the administration attempts to combat the domestic effects of quickly surging energy prices.
The Jones Act, formally the Merchant Marine Act of 1920, requires that ships transporting cargo between US ports be American-built, American-flagged, American-owned, and American-crewed — costly requirements that raise the expense of domestic seaborne goods flows.
The president’s waiver allows foreign-flagged vessels to transport cargo around the US for 60 days.
In the oil markets, this has the biggest impact on the shipment of refined products such as gasoline from the refinery complexes along the Gulf Coast to the more isolated East Coast. While the waiver doesn’t apply to all products, it covers a range of energy commodities, including crude oil, refined oil products such as diesel and gasoline, natural gas, coal, fertilizer, and other energy-derived products, Bloomberg reported.
“President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury,” White House press secretary Karoline Leavitt said in a statement posted on X. “The Administration remains committed to continuing to strengthen our critical supply chains.”
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