The White House is weighing another extension of waivers allowing foreign ships to transport goods between US ports as renewed conflict with Iran raises concerns about energy prices and supply disruptions, two sources familiar with the discussions told Reuters.The Trump administration is considering whether to extend the waivers with geographic restrictions, limiting where foreign-flagged vessels can transport goods between US ports, as officials seek to preserve a tool they say has helped ease supply pressures while addressing criticism from maritime industry groups and Republican allies.The White House, along with the Energy, Transportation and Interior departments, met earlier this week to weigh options ahead of a potential decision before the end of July, Reuters reports.A White House official said no decision has been made on whether to issue a third waiver extension, noting the current waiver does not expire until August 16.“President Trump’s decisive action to waive the Jones Act has helped prevent supply chain shortages across the country. The Administration is regularly monitoring how the waiver is being used,” the official said.
What is the Jones Act and why does it matter?
The Jones Act, formally known as the Merchant Marine Act of 1920, requires that any cargo transported between two US ports be carried on ships that are built in the US, owned by US companies, registered under the US flag and crewed primarily by US citizens or permanent residents.With tensions with Iran disrupting oil shipments through the Strait of Hormuz, the US may need to move more crude oil, gasoline, diesel or LNG quickly between domestic ports. The Jones Act limits those shipments to a relatively small fleet of US-qualified vessels, which can increase shipping costs, slow fuel movement and contribute to higher prices.A Jones Act waiver temporarily allows foreign-flagged ships to carry cargo between US ports, increasing available shipping capacity. Extended waivers are generally viewed as a measure designed to limit price spikes by improving the efficiency of moving energy around the US.Before the Middle East war, the Jones Act was waivered under the Biden administration in 2022, but it was only a single-ship waiver.
