By Andrew Stanton
President Donald Trump will issue a 60-day waiver of the Jones Act in its latest effort to curb rising gas prices amid the war in Iran, White House Press Secretary Karoline Leavitt announced on Wednesday.
“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. This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains,” Leavitt said on X.
The announcement comes as Americans continue to face spiking gas prices amid the war with Iran, which began after the U.S. and Israel struck the Middle East country on February 28.
Gas prices averaged $3.842 on Wednesday—up from $3.578 a week earlier and $2.923 a month earlier, according to AAA. The rising gas prices have become a political challenge for Trump ahead of the midterms.
What Is the Jones Act?
The Jones Act is a century-old law requiring goods shipped between American ports to be on ships built, owned and operated in the United States. It is formally known as Section 27 of the Merchant Marine Act of 1920. It was designed to ensure the United States maintained a strong merchant marine fleet capable of serving as a naval auxiliary in times of war or national emergency.
The law was passed following World War I. President Woodrow Wilson signed it into law on June 5, 1920. It emerged from postwar anxieties about foreign dominance of U.S. coastal shipping. Before its passage, the presence of foreign-built or foreign-crewed vessels raised concerns about America’s maritime independence.
Beyond shipping restrictions, the Jones Act also plays a central role in maritime worker protections.
The law can be waived in the “interest of national defense,” the U.S. Maritime Administration notes, either through the Homeland Security or Defense Department.
What Is the Jones Act Waiver?
The waiver is intended to ensure oil is imported into U.S. ports as gas prices continue to rise.
How Does the Jones Act Impact Oil Prices?
Proponents of the Jones Act waiver believe that opening domestic shipping routes to foreign-flagged vessels may provide some relief by expanding transportation options.
Sam Ori, executive director of the Institute for Climate and Sustainable Growth and Energy Policy Institute at the University of Chicago, told Newsweek that the waivers might not have a major impact on gas prices.
“Jones Act waivers are really a sideshow and unlikely to result in any significant relief in oil or refined product prices at a national level. Steps like this—or a gas tax holiday or strategic stock releases—are part of a familiar playbook that comes out during oil price shocks,” Ori said.
The measures are intended to show Americans the administration “is taking steps to address pain at the pump,” but are “inadequate to address a global oil supply disruption, particularly of this unprecedented magnitude,” he said. “There are no effective short-term options for reducing prices aside from a complete reopening of the Strait of Hormuz and return of normal levels of output from Gulf countries. Short of that, this crisis in oil markets is likely to continue to escalate.”