Trump Set To Suspend Jones Act To Help Tame Oil Prices

One day after the Trump administration flip-flopped on using the Strategic Petroleum Reserve (SPR) – eventually deciding to release 172 million barrels to try and counter the rising price of oil, they’re now planning to issue temporary waivers for a century-old maritime law, the Jones Act, that requires American-built ships to be used to transport goods between US ports, in yet another attempt to control crude. 

Under the plan, 30-day waivers would be issued that would allow foreign tankers to help supply refiners on the East Coast with fuel from the Gulf Coast and elsewhere, according to Bloomberg.

The US government can temporarily waive the Jones Act, but it cannot permanently lift it without Congress. The law requires that goods transported between US ports be carried on ships that are US-built, US-flagged, and US-crewed. However, under the Merchant Marine Act of 1920 framework, the administration can grant temporary waivers if it determines they are necessary for national defense or in response to emergencies, typically through coordination between the US Department of Homeland Security and the US Department of Defense.

Such waivers have been issued several times, for example after major hurricanes to allow foreign tankers to move fuel between US ports. Combining a release from the SPR with a temporary waiver of the Jones Act would make the policy more effective. Without a waiver, limited US-flagged tanker capacity could constrain how fast SPR barrels reach key refining centers or deficit regions.

The US last issued a waiver for the Jones Act in October 2022 for a tanker heading to Puerto Rico to deliver supplies following Hurricane Fiona. The Biden administration temporarily eased the law in 2021 for refiner Valero Energy Corp. following a cyberattack on a major East Coast fuel pipeline in 2021.

This builds directly on earlier reporting that the administration was actively reviewing options to combat the oil price spike, including lifting Jones Act requirements to ease domestic shipping bottlenecks and get Gulf Coast supply to high-demand coastal areas faster. In related comments, U.S. Energy Secretary Chris Wright stated that the administration was not considering imposing restrictions on exports of U.S. energy as a way to control prices, aligning with President Trump’s approach to prioritize increasing domestic supply flows and international coordination over export curbs that could disrupt global markets.

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