Trump Administration Prepares Waiver of Jones Act to Address Surging Fuel Prices

Originally from: Cailian Press

Cailian Press, March 13 — (Editor: Niu Zhanlin) The Trump administration is considering a temporary exemption from the century-old Jones Act to ensure the free transportation of energy and agricultural products between U.S. ports. White House Press Secretary Karine Leavitt stated on Thursday that this move aims to address supply disruptions caused by the Iran situation.

“For national defense reasons, the White House is considering a temporary exemption from the Jones Act to ensure that critical energy products and agricultural necessities can flow freely to U.S. ports,” Leavitt said in a statement. She added, “This action is not yet final.”

According to two informed sources, the announcement regarding a 30-day exemption could be made as early as Thursday, aiming to respond to the surge in fuel prices and other supply disruptions since the U.S. and Israel began targeting Iran.

High gasoline prices pose a significant political risk for Trump and his Republican colleagues. They have long claimed that their energy policies will keep fuel affordable for American consumers. If oil prices continue to rise, it could undermine this stance and invite criticism from Democrats, who argue that the government has failed to protect families from rising costs—especially with voters sensitive to inflation and the midterm elections approaching in November.

Data from the American Automobile Association (AAA) shows that on Thursday, the national average retail price of gasoline reached $3.60 per gallon, the highest since May 2024; diesel prices hit $4.89 per gallon, the highest since December 2022.

Trump has been exploring ways to stabilize energy prices, but analysts and energy experts say his options are limited as long as Iran continues attacks on tankers in the Strait of Hormuz.

Under the Jones Act, cargo transported between U.S. ports must be carried by vessels built in the U.S., flying the U.S. flag, and owned by U.S. companies. This requirement significantly restricts the number of oil tankers available for domestic transport.

Experts say that exempting this regulation would allow foreign ships to transport fuel between U.S. ports, helping to alleviate supply disruptions and potentially lower energy prices.

Patrick De Haan, an analyst at GasBuddy, a fuel price tracking organization, stated that a Jones Act exemption would not have a major impact on gasoline prices but could help slow price increases in import-dependent regions like the West Coast and Northeast.

This is because transporting goods from other parts of the U.S. to these regions would become easier. However, De Haan added that overall price trends still depend on developments in the Middle East.

The largest agricultural lobbying group in the U.S., the American Farm Bureau Federation, sent a letter to Trump on March 9, requesting a Jones Act exemption to improve domestic transportation capacity. They warned that disruptions in Strait of Hormuz shipping could lead to soaring fertilizer prices for farmers.

Historically, the U.S. has only sporadically issued Jones Act waivers during major supply disruptions. The most recent exemptions occurred after Hurricanes Harvey and Maria in 2017, when the Department of Homeland Security temporarily allowed foreign-flagged ships to transport fuel between U.S. ports to alleviate shortages and expedite aid to affected areas.

(Cailian Press, Niu Zhanlin)