- Trump may waive the Jones Act for oil shipments amid rising energy costs.
- The Jones Act is a 100-year-old law making U.S. energy more expensive even in peacetime.
- Repealing the Jones Act could lower fuel prices and benefit American families.
The Iran Conflict and Its Ripple Effects
As tensions escalate with Iran, the price of oil has seen a notable spike. The U.S., piggybacking on Israel’s recent bombing campaign in Iran, now faces rising energy costs. President Trump is reportedly considering a temporary workaround by suspending enforcement of the Jones Act—a law that has been in place for over a century.
The Jones Act: A Century-Old Protectionist Measure
Under the Merchant Marine Act of 1920, also known as the Jones Act, cargo shipped between U.S. ports must be carried by ships built in America and primarily owned and staffed by Americans. This law makes energy more expensive even when there isn’t a war raging in the Middle East. The logic behind it was that restricting foreign competition would encourage a strong U.S. shipbuilding sector.
The Jones Act’s Impact on Energy Costs
While the U.S. has only 92 Jones Act-compliant ships, there are 185 U.S.-flagged vessels in total. The other 93 are foreign-built but flagged in the United States, meaning they can’t carry cargo between American ports as per the law’s requirements. Oil tankers make up 55 of these 92 ships, and the cost to transport oil from Alaska to the U.S. mainland is significantly higher due to this restriction.
Even though Americans pay more for certain energy products like natural gas, even when it’s produced here, there’s a clear argument that repealing the Jones Act could benefit consumers by making energy cheaper and more accessible.
A Call for Repeal
“I introduced the Open America’s Waters Act last year to repeal the Jones Act,” Senator Mike Lee (R–Utah) stated on X. “Chucking this outdated policy would be a great step to alleviate fuel prices for American families.” The current oil shock provides a perfect excuse to finally reconsider and potentially remove this protectionist law.
While waiving the law in times of crisis is one option, it’s better to repeal it entirely. This way, we can ensure that energy costs remain low without relying on temporary measures.
The Perfect Excuse
“The decrepit Jones Act fleet makes it cost prohibitive to move products from Gulf Coast refineries to the Northeast or the West Coast,” The Washington Post editorial board wrote. “The Trump administration is reportedly considering waiving the law, and there is already legislation introduced in Congress to repeal it. That’s a great idea regardless of anything happening with Iran.”
Let’s hope that this crisis provides the impetus for a permanent solution rather than just a temporary fix.
