In response to soaring fuel and fertilizer prices triggered by the U.S. launching a war against Iran in February, 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 American ports to be carried 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, postponing its expiration until mid-August. This extension has allowed companies to transport goods between U.S. ports without restrictions on ship origin or flag.

According to Alana Pipe and Ryan Dezember of The Wall Street Journal, more than 31 million barrels of fuel and chemicals were moved by foreign vessels during the 90-day period. Over 70% of these shipments originated from the Gulf Coast, a region housing more than half of U.S. refining capacity and numerous petrochemical and fuel-export facilities. California, which relies heavily on Persian Gulf imports and has the highest gasoline prices in the country, has been the most frequent destination. Gasoline shipments have come from refineries in Texas, Louisiana, and Washington.

The waiver has also reactivated long-dormant U.S. energy supply chains. However, the Jones Act remains controversial. In a recent letter to President Trump, 52 Republican lawmakers, including House Speaker Mike Johnson and House Majority Leader Steve Scalise, urged the waiver to expire, describing the Jones Act as "our nation's strongest shield against foreign exploitation of American waterways." Critics note that despite over a century of protection under this law, American shipyards have not significantly increased ship production, suggesting limited industry efficiency.

The waiver highlights tensions between maintaining domestic maritime protections and addressing immediate economic and supply challenges.

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