Amid concerns of a logistics crisis due to renewed tensions between the U.S. and Iran, the White House is reportedly considering an extension of the Jones Act waiver, according to two sources cited by Reuters on July 15.
Reports indicate that since last week, as tensions between the U.S. and Iran have escalated and oil prices surged, worries about rising transportation costs and logistical disruptions have increased, prompting the review of the Jones Act waiver.
One source stated, "Thanks to the decisive action by President Trump to waive the Jones Act, we were able to prevent a nationwide supply chain crisis. The current administration is continuously monitoring how this waiver is being utilized." However, the source noted that the existing waiver remains in effect until August 16, and no additional waiver has been confirmed yet.
The Jones Act, enacted in 1920 to strengthen U.S. naval power and protect the shipbuilding industry, mandates that vessels transporting goods between U.S. ports must be built in the United States. It also requires that at least 75% of the vessel's ownership be American and that 75% of the crew be U.S. citizens.
However, due to a decline in the U.S. shipbuilding industry, there are limited vessels that meet these requirements, leading to criticism that the Jones Act acts as a barrier to domestic freight transport and contributes to rising transportation costs. The Trump administration initially waived the Jones Act for 60 days starting March 18, following the outbreak of conflict with Iran, and subsequently extended the waiver for an additional 90 days beginning May 18.
With the recent surge in oil prices due to renewed U.S.-Iran tensions, the Trump administration is now considering a third extension of the Jones Act waiver, which is set to expire on August 16. On that day, Brent crude futures closed at $84.95 per barrel, marking an 18.7% increase over the past two weeks.
However, some Republican lawmakers, including House Speaker Mike Johnson, have expressed opposition to extending the Jones Act waiver, arguing that it could weaken the U.S. shipbuilding and maritime industries.
* This article has been translated by AI.
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