The White House is reportedly considering an extension of the Jones Act waiver as concerns grow over a potential logistics crisis in the U.S. due to renewed tensions with Iran, according to Reuters, citing two sources on July 15.
Reports indicate that the White House began reviewing the waiver extension last week amid rising oil prices resulting from the renewed U.S.-Iran conflict, which has raised fears of increased transportation costs and logistical disruptions.
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 shortage. 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.
Enacted in 1920 to strengthen U.S. naval power and protect the shipbuilding industry, the Jones Act 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 at least 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 transportation and contributes to rising shipping 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.
As tensions between the U.S. and Iran have escalated, causing oil prices to surge, 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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