Key facts
- The White House is considering extending waivers allowing foreign ships to transport goods between U.S. ports.
- The waiver was implemented to ease fuel costs and address supply disruptions amid the Iran conflict.
- The Jones Act requires U.S. domestic shipping to use American-built and flagged vessels.
- A previous 60-day waiver, extended to 90 days, increased domestic oil shipments by approximately 70%.
- Over 9 million barrels of oil have been transported by foreign vessels under the waiver since March.
- The waiver has had a significant impact on fuel supply in Alaska.
The White House is considering another extension of waivers that allow foreign ships to transport goods between U.S. ports, a move prompted by renewed conflict with Iran and concerns over energy prices and supply disruptions. The Jones Act, a century-old U.S. maritime law, typically mandates that goods transported between domestic ports must be carried on American-built and flagged vessels. This requirement has been criticized for increasing transport costs due to a limited supply of eligible ships.
In response to rising fuel prices linked to Middle East tensions, the Trump administration initially introduced a 60-day waiver on March 18, allowing foreign-flagged tankers to move oil between U.S. ports. This policy shift significantly expanded available shipping capacity, with White House data indicating that approximately 40 additional tankers entered the domestic trade, effectively increasing the fleet by about 70%. Since the waiver took effect, foreign vessels have transported at least 9 million barrels of oil across key domestic routes, including from California to Texas, Florida, and Alaska.
Officials note that the impact has been particularly significant in Alaska, where imported jet fuel under the waiver now accounts for roughly half of the state’s typical monthly consumption. The administration views the waiver as a critical tool to mitigate supply bottlenecks and stabilize fuel prices during a period of heightened geopolitical risk. The Trump administration later extended this waiver for another 90 days.
However, the policy remains politically contentious, pitting economic efficiency against domestic industry protection. While the waiver has provided short-term benefits such as increased supply and reduced transport costs, its extension could face opposition from stakeholders concerned about the long-term implications for U.S. shipping capacity and employment. The waiver can be invoked in the "interest of national defense."