In response to skyrocketing prices of fuel and fertilizer following the U.S. war against Iran in February 2026, President Donald Trump issued a waiver of Section 27 of the Merchant Marine Act of 1920, commonly known as the Jones Act. This law requires cargo moving between U.S. ports to be transported on ships built, owned, and crewed predominantly by Americans.

The waiver initially lasted 60 days but was extended by Customs and Border Protection for an additional 90 days, delaying its expiration until mid-August. This extension allowed companies to ship goods between U.S. ports without restrictions on the ship's origin or flag.

According to reporting by Alana Pipe and Ryan Dezember in The Wall Street Journal, over 31 million barrels of fuel and chemicals were transported by foreign vessels during the 90-day waiver period. More than 70% of these shipments originated from the Gulf Coast, which hosts over half of U.S. refining capacity and numerous petrochemical and fuel-export facilities. The most frequent destination was California, a state reliant on Persian Gulf imports and known for having the highest gasoline prices in the country. Gasoline shipments to California came from refineries in Texas, Louisiana, and Washington.

The waiver has brought long-dormant U.S. energy supply chains back to life, as only one of the hundreds of LNG tankers worldwide complies with the Jones Act, limiting domestic shipping options.

Despite these developments, 52 Republican lawmakers, including House Speaker Mike Johnson (R–La.) and House Majority Leader Steve Scalise (R–La.), urged President Trump in a letter to let the waiver expire. They described the Jones Act as "our nation's strongest shield against foreign exploitation of American waterways."

Critics note that over the 100-plus years the Jones Act has protected the domestic shipping industry from competition, American shipyards have not produced a surplus of new ships, suggesting the law may reduce industry efficiency.

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