Trump’s Suspension of the Jones Act is a Win for American Consumers

The Trump administration’s decision to waive the Jones Act for 60 days is a move that will mitigate disruptions to supply chains and energy markets caused by ongoing conflicts in the Middle East.

The waiver is a welcome step forward and yet another example of why Congress should repeal the Jones Act entirely.

The Jones Act, enacted in 1920, requires that goods transported between U.S. ports are on U.S. built vessels that maintain American crew. In practice, these regulations severely restrict the number of available ships for domestic transport. Today, there is only a few Jones Act-compliant vessels, only 92 as of 2024, and even less are capable of moving energy products, just 54 oil tankers and a single natural gas carrier compared to the thousands of ships that operate globally.

Concurrently, U.S. shipbuilding represents a tiny share of global output, and the number of compliant vessels has been steadily declining. Meanwhile, the law imposes inflated transportation costs on Americans businesses and consumers, especially burdensome for non-contiguous states or territories such as Hawaii and Puerto Rico.

This raises an obvious question that if the Jones Act is essential to national security interests and economic stability then why must it waived during times of crisis?

In fact, the Jones Act has been waived 39 times in the 105 year lifespan of the law to address emergencies including energy shortages, military operations, and natural disasters. The repeated waivers demonstrates that in these times, the law actually becomes an obstacle rather than an asset.

The administration’s decision to temporarily waive the Jones Act grants access to an extensive and efficient fleet. The use of foreign vessels allows for greater flexibility in the movement of essential goods, helping to ease supply chain issues and stabilize energy markets.

As White House Press Secretary Karoline Leavitt explained in a statement:

President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury. This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains.

Expanding shipping capacity and reducing the regulatory barriers is a move towards alleviating price spikes and reinforcing supply chain durability.

Americans for Tax Reform applauds the Trump administration for issuing a 60-day waiver of the Jones Act, a step that expands shipping capacity, eases supply chain bottlenecks, and protects American consumers from rising energy costs.