President Donald Trump on Monday extended a 90-day waiver of the Jones Act, allowing foreign-flagged vessels to transport energy and agricultural goods between U.S. ports. The extension takes effect August 17, following two prior waivers issued in March and April to address supply disruptions linked to the conflict in the Strait of Hormuz.
The Jones Act of 1920 requires vessels transporting goods between U.S. ports to be U.S.-built, U.S.-owned, U.S.-flagged, and U.S.-crewed. The law aims to support the domestic maritime industry and national security. A waiver temporarily suspends these requirements to address emergencies or supply chain disruptions.
White House Response
Taylor Rogers, a White House spokeswoman, stated in a post on X that the administration acted "to ensure our military and key industries maintain uninterrupted access to critical resources." She cited data indicating the waiver has increased domestic deliveries of gasoline, diesel, and jet fuel, though specific figures were not provided.
Scope of the Waiver
The latest extension covers a narrower range of goods compared to prior waivers, focusing on oil, fertilizers, and other energy-related products. The Pentagon and Maritime Administration will jointly determine which voyages qualify for exemption. The initial waiver in March covered coal, oil, and refined fuels, while the April extension expanded to include additional energy products.
Background: Iran Conflict and Supply Disruptions
The waivers were issued in response to disruptions in global oil shipping following the Iran-Israel conflict, which reduced vessel traffic through the Strait of Hormuz—a critical chokepoint for oil and liquefied natural gas transit. Pre-war levels of shipping through the strait have not been restored, according to reports.
Domestic Maritime Industry Response
Critics argue the waiver undermines the Jones Act’s goals of supporting U.S. shipbuilding and maritime jobs. A subset of coverage highlights concerns that foreign vessels, including those owned and crewed by Chinese and Russian entities, have operated under U.S. tax exemptions while transporting goods between American ports. These vessels are exempt from U.S. taxes and labor regulations that apply to domestic operators.
Policy Implications and Tax Exemptions
The waiver allows foreign operators to participate in domestic trade under Section 883 of the Internal Revenue Code, which exempts certain foreign income from U.S. taxation. This has raised questions about fair competition and the uneven regulatory burden placed on U.S. maritime companies, which must comply with federal and state taxes, labor laws, and safety standards.
Economic Impact Debate
Proponents of the waiver, including the White House, argue it has helped stabilize fuel prices and ensure energy supply continuity. Opponents contend that no public evidence demonstrates direct savings for consumers at the gasoline pump. Instead, they note that refiners have reported record earnings amid global market conditions, suggesting the waiver primarily benefits industry profits rather than drivers.
Next Steps
The administration has not indicated whether further extensions will be considered beyond the current 90-day period. The Maritime Administration and Pentagon will continue to assess the need for exemptions based on supply chain conditions and geopolitical developments.