Trump Considers Extending Jones Act Waiver to Address Rising Energy Prices from Iran War

Axios reported on April 21 (local time) that U.S. President Donald Trump is expected to extend the waiver of the Jones Act in response to rising energy prices caused by the war with Iran.

The Jones Act is a law that grants exclusive rights for transportation between U.S. ports to ships that are built in the United States, owned by U.S. citizens, and registered under the U.S. flag. President Trump, in response to rising energy prices due to the Iran war, ordered a 60-day waiver of the Jones Act on March 18. During this period, foreign vessels are also allowed to transport goods between U.S. ports, which leads to reduced logistics costs.

U.S. President Donald Trump. Photo by UPI Yonhap News

Quoting White House materials, Axios reported that 40 tankers have been able to transport oil between U.S. ports, resulting in an approximately 70% expansion of the fleet and a reduction in transportation costs. During this period, over 9 million barrels of U.S.-produced crude oil were shipped on foreign-flagged vessels.

A close associate who discussed the Jones Act with President Trump told Axios that the president responded positively, saying, “As long as Iran remains a threat and continues to drive up fuel prices, the president wants to keep the waiver in place for as long as necessary.”

White House spokesperson Taylor Rogers stated that no final decision has yet been made regarding the extension of the Jones Act waiver, but noted, “The waiver has helped mitigate cost increases, and if you look at the data, more cargo is arriving at U.S. ports more quickly.”

Reactions within the United States are divided. The conservative think tank Hudson Institute pointed out, “Waiving the Jones Act could allow vessels built outside the U.S., including in China, to take jobs from Americans in the domestic market and harm tens of thousands of American workers as well as the tens of billions of dollars invested in the American shipping and shipbuilding industries.”

On the other hand, the libertarian Cato Institute argued, “This outdated and burdensome law has survived nearly a century of scrutiny, but there is an imbalance between the few who benefit from the Jones Act and the majority who bear its costs.”

This content was produced with the assistance of AI translation services.