Jones Act Suspension Under Consideration
The Trump administration is preparing to issue a temporary suspension of the Jones Act, which could allow foreign tankers to supply fuel to the U.S. East Coast amid rising gasoline and diesel prices.
The proposed waivers, lasting 30 days, would enable foreign vessels to transport fuel from the Gulf Coast to East Coast refiners. This decision comes as U.S. gasoline prices have reached $3.60 per gallon, the highest level since May 2024, while diesel prices have surged to $4.89 per gallon, marking the highest since late 2022.
The Jones Act mandates that goods shipped between two U.S. ports must be transported on vessels that are American-built, American-owned, American-flagged, and crewed primarily by American workers. Historically, the act has been suspended only during significant national emergencies, such as hurricanes or severe supply disruptions.
The last waiver was issued in October 2022 for a tanker supplying Puerto Rico after Hurricane Fiona. The Biden administration also temporarily eased the law in 2021 for refiner Valero Energy following a cyberattack.
White House spokesperson Katherine Leavit stated, “The administration is considering waiving the Jones Act for a period, though she noted the action had not been finalized.” This potential suspension is politically sensitive, as the Jones Act commands strong support from maritime unions.
As the U.S. grapples with escalating conflict with Iran, the current proposal aims to blunt the impact of rising fuel prices. The waiver could potentially slow gasoline price increases by roughly five to ten cents per gallon.
Currently, the number of qualifying ocean-going vessels under the Jones Act has diminished from 193 to just 92, further complicating domestic fuel supply logistics.
The Jones Act, formally known as the Merchant Marine Act of 1920, was originally designed to ensure domestic shipbuilding capacity and maintain a pool of merchant mariners for use in national emergencies.
Details remain unconfirmed regarding the final decision on the suspension. However, the administration’s consideration of this waiver reflects the urgent need to address the rising costs of fuel and the implications of international conflicts on domestic energy supplies.