The Trump administration plans to waive a century-old maritime law that requires American ships be used to transport goods between U.S. ports — as it seeks to blunt surging oil and gasoline prices — according to people familiar with the matter. The 30-day exemption, still being developed, is set to apply broadly to vessels moving oil, gasoline, diesel, liquefied natural gas and fertilizer among U.S. ports. That would enable generally cheaper foreign tankers to move those goods — including Gulf Coast oil to refineries on the U.S. East Coast and fuel from the region to more populous areas.
"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 US ports," White House Press Secretary Karoline Leavitt said in a statement. "This action has not been finalized." The plan comes as President Donald Trump considers multiple options to stem the dramatic rise in crude and gasoline amid the war in Iran.
On March 11, the administration announced it would release 172 million barrels of crude from the Strategic Petroleum Reserve. Overall, countries are coordinating to release 400 million barrels from their stockpiles. U.S. gasoline futures pared gains after the news. Waiving the Jones Act could save East Coast motorists roughly 10 cents a gallon, according to a 2022 JP Morgan Chase & Co. estimate.
From a supply chain perspective, this waiver significantly alters the competitive dynamics of the U.S. domestic shipping sector. For Jones Act-flagged operators such as Crowley, Kirby Corporation and Overseas Shipholding Group, short-term market share losses are likely — while refinery operators and East Coast consumers gain cost relief. From a supply chain perspective, such ad hoc waivers also rekindle structural Jones Act reform debates — particularly around LNG capacity and fertilizer logistics.
