By Elsie Kamsiyochi
The administration of President Donald Trump is considering temporarily relaxing long-standing U.S. shipping regulations in an effort to ease rising fuel prices and prevent further disruptions to domestic supply chains.
The proposal involves issuing a short-term waiver of the Jones Act, a century-old maritime law that governs shipping between American ports. Officials say the measure is being evaluated as part of a broader response to supply disruptions linked to the ongoing conflict involving Iran.
White House Press Secretary Karoline Leavitt confirmed that the administration is exploring the possibility of suspending the Jones Act for a limited period. According to her statement, the move is intended to ensure that critical goods—including energy supplies and agricultural products—can be transported more freely within the United States during a period of heightened geopolitical tensions.
“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 U.S. ports,” Leavitt said. She added, however, that the proposal has not yet been finalized and discussions within the administration are still ongoing.
Sources familiar with the matter indicated that a waiver lasting approximately 30 days could be announced soon, potentially as early as Thursday.
If implemented, the decision would come amid growing concerns about the economic impact of the escalating Middle East conflict, particularly attacks on oil tankers in the Strait of Hormuz. These attacks have disrupted global oil shipping routes and triggered spikes in fuel prices around the world.
The surge in gasoline prices presents a significant political challenge for Trump and Republican lawmakers. For years, they have promoted energy policies aimed at keeping fuel affordable for American households.
However, rising costs at the pump risk undermining that message, especially as voters remain sensitive to inflation and economic pressures ahead of upcoming U.S. midterm elections.
Recent data from the American Automobile Association (AAA) shows that the national average price of gasoline in the United States reached $3.60 per gallon on Thursday—the highest level since May 2024. Diesel prices have climbed even higher, reaching $4.89 per gallon, their highest point since December 2022. Analysts say such increases could strain both consumers and businesses that depend heavily on transportation.
Energy experts note that the administration has limited options for controlling fuel prices while tensions in the Middle East continue to disrupt global oil markets.
The Strait of Hormuz, located off the coast of Iran, is one of the most important oil transit routes in the world, with roughly one-fifth of global crude oil supplies normally passing through the narrow waterway. Any threat to shipping in the region can have immediate ripple effects on energy prices worldwide.
Under the Jones Act, goods transported between U.S. ports must be carried on ships that are built in the United States, owned by American companies, and operated primarily by American crews.
While the law was designed to support the domestic shipping industry and strengthen national security, critics argue that it limits the number of vessels available for transporting goods within the country, increasing shipping costs.
Temporarily waiving the law would allow foreign-flagged vessels to transport fuel and other cargo between U.S. ports, potentially reducing transportation bottlenecks and lowering costs. Analysts say the impact on fuel prices might not be dramatic, but the measure could help slow the rate at which prices are rising—especially in regions that rely heavily on imported fuel.
Patrick De Haan, an analyst with fuel price tracker GasBuddy, said the waiver could make it easier to move fuel supplies from one part of the United States to another. Regions such as the West Coast and the Northeast, which depend more heavily on shipments from other areas, could benefit the most.
According to De Haan, the policy might reduce the pace of price increases by around five cents per gallon in the short term. However, he cautioned that the overall direction of fuel prices will continue to depend largely on developments in the Middle East and the security of major oil shipping routes.
The potential waiver has also drawn attention from the agricultural sector. The American Farm Bureau Federation recently urged the administration to suspend the Jones Act temporarily to help ease transportation shortages affecting farm supplies. In a letter sent to the White House on March 9, the organization warned that disruptions to shipping routes through the Strait of Hormuz could cause fertilizer prices to spike, placing additional financial pressure on farmers during the growing season.
Historically, the U.S. government has issued Jones Act waivers only in rare circumstances, typically following major natural disasters or severe supply disruptions. For example, temporary waivers were granted after Hurricanes Harvey and Maria in 2017, allowing foreign ships to transport fuel between U.S. ports to help regions affected by shortages.
As energy markets remain volatile and geopolitical tensions continue to escalate, the Trump administration is weighing whether such an extraordinary measure is necessary once again.
While the proposal may provide only modest relief at the pump, officials believe it could help stabilize domestic supply chains and prevent further economic strain during an already turbulent period for global energy markets.
Source Reuters
