The White House said it was considering waiving the Jones Act, a century-old statute that promotes American-made vessels, as it grapples with increased fuel prices during the conflict with Iran.
"In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports," White House press secretary Karoline Leavitt said.
"This action has not been finalized."
The Jones Act, passed in 1920, requires cargo being moved by water between U.S. ports to be shipped on ships built, owned, and registered in the country.
The exemption would last for 30 days and apply broadly to vessels moving oil, gasoline, diesel, liquefied natural gas, and fertilizer among U.S. ports, Bloomberg reported.
The move comes as the Trump administration announced it would release 172 million barrels of crude from the Strategic Petroleum Reserve and other countries said they would release 400 million barrels from their stockpiles.
Waiving the Jones Act could save East Coast motorists roughly 10 cents a gallon, according to a 2022 JP Morgan Chase & Co. estimate.
"It absolutely facilitates the free flow of gasoline, which otherwise would have to come from Europe or other destinations to reach the Northeast," David Goldwyn, an energy envoy under former President Barack Obama and president of consulting firm Goldwyn Global Strategies, told Bloomberg.
"There are very few U.S. tankers that are available, so the Northeast continues to import whatever gasoline they can't get from pipeline."
An associate director at the Cato Institute, which advocates repealing the law, told Bloomberg the impact would be limited.
"The Jones Act is probably responsible for a few cents per gallon — pennies per gallon, not dimes per gallon," Colin Grabow told Bloomberg. "It could be helpful, but the effects could get swamped by broader movements in the market."
A White House official told Bloomberg lifting the Jones Act would not impact American shipbuilding.
The Jones Act was last lifted in October 2022 to assist Puerto Rico following Hurricane Fiona.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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