Trump extended a 90-day Jones Act waiver for some domestic shipping, while adding limits after pressure from U.S. shipbuilders.
WASHINGTON, UNITED STATES.— President Donald Trump has extended a waiver of the Jones Act for another 90 days, allowing certain foreign-flagged vessels to transport oil and other commodities between U.S. ports while narrowing the policy after criticism from American shipbuilders and congressional allies.
The decision reflects the administration's attempt to balance domestic shipping protections with energy and supply concerns during a period of heightened volatility in international oil markets.
Why the Jones Act waiver matters
The Jones Act generally requires cargo transported between U.S. ports to move aboard vessels that meet U.S. ownership, construction, registration and crew requirements.
Waivers can therefore increase transportation flexibility when domestic shipping capacity is insufficient or when extraordinary market circumstances emerge.
Reuters reported that Trump extended the waiver for 90 days but imposed additional limitations after shipbuilders and supporters in Congress argued that a broad exemption was damaging the U.S. maritime industry.
The debate illustrates a longstanding tension in American maritime policy.
Supporters of the Jones Act argue that it protects U.S. shipbuilding capacity, maritime employment and national-security capabilities. Critics contend that restrictions can increase domestic transportation costs, particularly when shipping capacity is constrained.
Energy pressures complicate the decision
The extension comes as global oil markets face renewed uncertainty surrounding the U.S.-Iran confrontation and disruptions involving the Strait of Hormuz.
Reuters reported Tuesday that oil prices had climbed more than 2% as prospects for a U.S.-Iran agreement weakened.
Shipping traffic through the Strait of Hormuz has also fallen sharply, adding to concerns surrounding global energy transportation.
Those international pressures make the availability and cost of moving energy supplies increasingly important for the United States.
What happens during the next 90 days
The narrower waiver gives the administration additional time to manage domestic transportation needs while responding to objections from the U.S. maritime sector.
Attention will now turn to whether the waiver is allowed to expire, extended again or modified further.
Its economic impact will depend partly on energy prices, available U.S.-flagged shipping capacity and developments in the Middle East.
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