US President Donald Trump on Friday approved a 90-day extension to a key shipping waiver that allows foreign-flagged vessels to move oil, fuel and fertilizer between US ports, the White House said. The move comes as the US tries to keep energy prices under control amid tensions linked to the conflict involving Iran.
The waiver, which was due to expire on May 17, will now remain in place until mid-August. It gives more flexibility in transporting essential commodities across the United States at a time when supply chains face pressure.
White House spokeswoman Taylor Rogers said the decision would help markets remain steady, reported Reuters. “This waiver extension provides both certainty and stability for the US and global economies,” she said.
What does the waiver do?
The waiver relaxes rules under the Jones Act, a US law that requires goods shipped between American ports to travel on vessels that are built, owned and operated by Americans. By allowing foreign ships to step in, the waiver increases the number of vessels available to carry fuel and other critical goods.
Officials believe this step will help avoid supply shortages and prevent sharp price increases, especially in energy markets. The ongoing geopolitical tensions tied to Iran have already raised concerns about fuel supply disruptions, and the administration wants to act early to limit the impact on consumers, reported Reuters.
Industry groups that rely on shipping welcomed the decision. Energy producers and agricultural businesses have said that strict domestic shipping rules can slow down deliveries and raise costs during emergencies.
What is Jones Act?
The Jones Act was introduced in 1920 under President Woodrow Wilson to strengthen the country’s maritime industry after World War I. Supporters say the law protects national security by ensuring the United States has a strong domestic fleet and trained crews that can support military needs.
Shipbuilders, maritime unions and some lawmakers continue to back the law. They say it helps maintain jobs and ensures the country does not depend on foreign vessels during crises.
Meanwhile, critics including refiners, fuel distributors and farm groups say the law reduces competition and drives up transport costs. They say that limiting shipments to US-flagged ships creates bottlenecks, especially when demand spikes or supply chains face disruptions.