The White House is considering again extending a waiver that allows foreign ships to transport cargo between U.S. ports, two people familiar with the matter told Reuters, as a new conflict with Iran raises concerns about energy prices and supply disruptions.The Trump administration is considering whether to expand exemptions to geographic restrictions limiting where foreign-flagged ships can transport cargo between U.S. ports, as officials seek to preserve a tool they say will help ease supply pressures while responding to criticism from maritime industry groups and Republican allies.The White House and the energy, transportation and interior departments met earlier this week to weigh options before making a possible decision by the end of July, Reuters reported.A White House official said a decision has not yet been made on whether to extend the exemption for a third time, noting that the current exemption does not expire until August 16.“President Trump’s decisive action to waive the Jones Act will help prevent supply chain shortages across the country. The administration is regularly monitoring the use of waivers,” the official said.
What is the Jones Act and why is it important?
The Jones Act, formally known as the Merchant Marine Act of 1920, requires that any cargo transported between two U.S. ports must be transported on a ship built in the United States, owned by a U.S. company, registered under the U.S. flag, and crewed primarily by U.S. citizens or permanent residents.The United States may need to quickly transport more crude oil, gasoline, diesel or liquefied natural gas between domestic ports as tensions with Iran disrupt oil shipments through the Strait of Hormuz. The Jones Act limits these shipments to a relatively small fleet of U.S.-qualified vessels, which could increase transportation costs, slow the flow of fuel and lead to higher prices.Jones Act exemptions temporarily allow foreign-flagged vessels to transport cargo between U.S. ports, increasing available shipping capacity. Extending the exemption is generally seen as a measure aimed at limiting soaring prices by making energy transportation more efficient across the United States.Before the war in the Middle East, the Jones Act was waived during the Biden administration in 2022, but only for a single ship.
