Trump extends Jones Act waiver 90 days for fuel transport

The Trump administration on Monday extended a 90-day waiver of the Jones Act, a century-old law that requires goods shipped between U.S. ports to be carried by American-built, owned, and crewed vessels. The move is aimed at easing fuel costs by allowing foreign-flagged tankers to transport oil and refined products along the U.S. Gulf Coast and to Puerto Rico. White House officials said the decision follows months of pressure from energy companies and refiners struggling with tight domestic shipping capacity and rising transportation expenses.

The Jones Act has long been a target for waivers during supply disruptions or price spikes. Its requirements limit the number of available ships for coastal trade, driving up costs when demand surges. This latest waiver comes as gasoline prices have climbed toward $3.50 a gallon in some states, partly due to tighter global oil markets and logistical bottlenecks. Industry groups argue the law artificially inflates shipping rates, while labor unions and shipbuilders defend it as vital for national security and maritime jobs.

The waiver is not unlimited. It applies only to shipments of crude oil, diesel, jet fuel, and gasoline between U.S. ports, and excludes certain other products. It also expires after 90 days unless renewed. Energy analysts say the move may provide temporary relief but won’t solve deeper structural issues, such as the shrinking U.S. tanker fleet or aging infrastructure. Some refiners in the Gulf Coast have already chartered foreign vessels ahead of the waiver, suggesting the impact may be modest.

Critics warn that over-reliance on waivers could undermine the Jones Act’s original purpose: maintaining a strong, self-sufficient maritime sector. Supporters of the law say the waiver is a band-aid that masks the need for long-term investment in U.S. shipbuilding. With midterm elections approaching, the decision also carries political weight, as high gas prices remain a top voter concern. The administration has signaled it will monitor market conditions before deciding whether to extend the waiver again later this year.