By Andrew Moran
President Donald Trump granted a 60‑day Jones Act waiver to lower shipping costs and support fuel supply flows, the White House said on March 18.
The waiver allows foreign-flagged vessels to transport goods between U.S. ports. The suspension will apply to commodities, including coal, crude oil, fertilizer, natural gas, and refined fuel.
“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 on X.
The 1920 Jones Act requires that shipments between American ports use U.S.-flagged ships. While the law was intended to bolster the American maritime sector, the rule has long been faulted for delaying shipments and driving up costs, especially for fuel.
The waivers would permit foreign tankers to assist in moving U.S. crude to domestic refineries, helping offset energy price increases tied to disruptions in the Strait of Hormuz during the Iran war.
Energy prices have surged during the three-week-old Iranian conflict.
In addition to motorists feeling the pain at the pump—the national average price for a gallon of gasoline surpassed $3.84 on March 18—shipping costs are also soaring.
Diesel topped $5 a gallon this week for the first time since 2022, up from around $3.67 a month ago, according to the American Automobile Association.
A 2023 working paper estimated that waiving the Jones Act could reduce average East Coast gasoline prices by 63 cents.
Costs for diesel and jet fuel, economists estimate, could fall by as much as 82 cents and 80 cents, respectively.
John Haughey contributed to this report.
