Trump Enacts 60-Day Jones Act Waiver

President Donald Trump issued a 60-day waiver to the Jones Act March 18, with the stated goal of reducing gas prices at the pump in the wake of the bombing campaign against Iran by the United States and Israel that has sent global oil prices above $100 a barrel. The waiver drew swift reactions from Jones Act proponents, including the American Waterways Operators and American Maritime Partnership, which stated any waiver of the Jones Act won’t help gasoline prices and does not serve U.S. interests.

America’s Maritime Partnership said in a statement on X March 18, “We are deeply concerned about this 60-day, broad waiver being abused and unnecessarily displacing American workers and American companies. The law sets a high bar: the waiver exists solely to address an immediate threat to military operations, not to displace American workers or reward foreign operators. Every vessel movement under this waiver must be publicly disclosed and justified according to federal law. We will be watching closely — and so will the American public.”

The organization added, “We also reiterate that this waiver will not reduce gas prices. The maximum potential impact of domestic shipping on the cost of gasoline nationwide is less than one penny per gallon.”

White House press secretary Karoline Leavitt stated on X, “President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury. This action will allow vital resources like oil, natural gas, fertilizer and coal to flow freely to U.S. ports for 60 days, and the administration remains committed to continuing to strengthen our critical supply chains.”

The waiver was one of a number of recent actions taken by the administration to ease oil market concerns. Jones Act waivers can be granted in the interests of national security, but waiver requests must typically show documentation that no U.S. vessels were available. It’s not clear whether this requirement was met.

Most ships have avoided the Strait of Hormuz as Iranian missile and drone attacks have targeted the Persian Gulf states and shipping. Marine insurer Lloyd’s of London withdrew insurance coverage from the strait early in the conflict, leading Trump to instruct the Development Finance Corporation (DFC) to provide “at a very reasonable price, political risk insurance and guarantees for the financial security of all maritime trade, especially energy, traveling through the Gulf,” Trump wrote in a social media post March 3.

At no point has the strait been completely closed, despite claims.

“The Iranian ships have been getting out already, and we’ve let that happen to supply the rest of the world,” Treasury Secretary Scott Bessent told CNBC on March 16. The United States has allowed Iranian tankers to transit the strait headed for China and India, both of which depend heavily on Iranian oil.

On March 13, Trump said on social media that the U.S. had bombed “military installations” at Kharg Island, the premier Iranian site for oil shipments at the head of the Persian Gulf, while leaving oil infrastructure intact. The move came amid speculation that the United States could take control of Kharg Island or even occupy it with U.S. Marines, something Trump has discussed since 1988. Roughly 90 percent of Iran’s oil exports flow through Kharg Island.

Where Does Jones Act Come In?

Nothing in the Jones Act prevents foreign-flag vessels from delivering as much oil and gas to U.S. shores as needed. The Jones Act restricts shipping between U.S. ports to U.S.-flag and U.S.-built vessels — but not from foreign ports to the U.S. or vice versa. Previous administrations have granted temporary waivers during crises that affect oil prices or supplies to particular destinations, such as in the wake of Hurricane Fiona in October 2022 to relieve Puerto Rican oil supplies.

According to the U.S. Energy Information Administration, the U.S. imports a relatively small amount of oil and gas through the Strait of Hormuz, accounting for approximately 0.4 million to 0.5 million barrels per day (bpd) of crude oil in early 2025. This volume represents about 7 percent of total U.S. crude oil imports and only about 2 percent of total U.S. petroleum liquid consumption.

Thanks to the fracking revolution, the United States is the world’s biggest exporter of both oil and natural gas. The United States became the world’s largest LNG exporter in 2022 and solidified this position in 2023 and 2024, passing major competitors Australia and Qatar. U.S. LNG exports set records in 2023-2024, far exceeding the roughly 10.1billion to 10.5 billion cubic feet per day range of Australia and Qatar.

A March 16 report issued by the S&P Global Energy division on the implications of a Jones Act waiver said that a temporary waiver might have some small effects on pump prices on the East and West coasts, which depend more on foreign imports than the country’s middle. East Coast refineries are set to process the heavy sour crude we still import in smaller quantities rather than the light sweet crude produced by the Permian Basin and Eagle Ford domestic shale plays.

“Because the West Coast’s imports are sourced nearly exclusively from Asia and require several weeks of transit, the region is increasingly exposed to price volatility and vulnerable to supply shocks from the Asian market,” the S&P report stated. Thanks in part to California’s energy and climate policies that are forcing a transition away from fossil fuels and toward electric vehicles, multiple major oil refineries have closed or announced shutdowns in California over the past five years, reducing the state’s processing capacity. Key closures include the Marathon refinery in 2020, the Phillips 66 refinery in Los Angeles in 2025-2026 and the Valero refinery in Benicia planned for 2026.

The American Waterways Operators said in a statement, “The Jones Act is fundamental to America’s supply chain reliability and national security, and this broad 60-day waiver of this vital law puts both at risk. The breadth of this waiver is especially concerning, as it will unnecessarily impact transportation markets where domestic vessel capacity is not lacking. Allowing foreign vessels to transport cargo on U.S. waterways will introduce the price volatility of today’s international market into our domestic commerce, creating instability in our thriving domestic supply chain and undermining American jobs while having no appreciable effect on the price of gasoline.

“At a time of heightened concern about terrorist threats on American soil, the Jones Act also serves as a security bulwark against foreign‑flag vessels with foreign crews transporting critical cargo between America’s inland and coastal ports, and ensures that American mariners remain the indispensable eyes and ears supporting the U.S. Coast Guard’s homeland security mission.

“Our nation counts on the Jones Act mariners of the American tugboat, towboat and barge industry to power the American economy and help keep our communities and waterways safe. Waiving the Jones Act does not serve those interests.”

Speaking to news wire The Center Square, Andrew Lipow with Houston-based Lipow Oil Associates suggested that if there is a restriction on crude oil or refined product exports, there could be enough tanker availability to move crude oil from the Gulf Coast to the East and West coasts. Another option, Lipow said, is for the administration to suspend the federal excise tax of 18.4 cents a gallon on gasoline and 24.4 cents a gallon on diesel fuel. The Trump administration and other states could follow the lead of Florida and Georgia, which both suspended their state gasoline tax several years ago to help offset increased inflationary pressures. Georgia lawmakers this week worked to suspend its gas tax again.

With reporting by The Center Square.