Amid heightened US-Iran war tensions, Trump extends Jones Act waiver for another 90 days: Here's what it means

The White House on Monday (local time) said that US President Donald Trump had extended a waiver for another 90 days, permitting foreign-flagged ships to transport oil and goods between US ports. He, however, introduced new restrictions following pressure from shipbuilders and lawmakers who said the policy was weakening the domestic maritime industry.

Finalised on Monday, the extension comes as the US war with Iran disrupts global crude supplies and drives fuel prices higher, putting pressure on the Trump administration to ease transportation constraints and prevent further increases in gasoline and other energy costs, Reuters reported.

A White House official confirmed that under the new terms, the administration has revised terms narrow the waiver's scope, requiring each voyage by a foreign-flagged vessel to be assessed separately rather than granting ships broad exemptions from the Jones Act.

White House spokeswoman Taylor Rogers said that the 90-day extension will ensure that the US military and critical industries continue to have reliable access to essential resources. In a post on X, Rogers added, “Data shows the waiver has driven a significant increase in domestic deliveries of essential products such as gasoline, diesel, and jet fuel.”

What is the Jones Act?

According to the 1920 Jones Act, cargo moving between US ports must be carried on ships built in the country, owned by domestic companies, and managed by American workers. The latest waiver by the administration aims to bring down gas prices by increasing shipping flexibility and reducing transport constraints.

The Merchant Marine Act, or the Jones Act, was designed to strengthen the US-owned commercial shipping industry, a priority that became increasingly important during World War I, when naval blockades highlighted the close link between maritime commerce and national security.

The waiver was first announced in March, days after the US and Israel launched joint operations against Iran in late February. On 9 March, the American Farm Bureau Federation, the largest farm lobby in the country, urged the US President in a letter to waive the act to help improve domestic transportation capacity. The association has warned the US President that fertiliser prices could also spike and cause disruptions for farmers.

Without the latest extension, the waiver was set to expire on 16 August, making it one of the longest suspensions of the more than 100-year-old law to date.

Industry experts react to Jones Act waiver extension

The American Petroleum Institute, the industry trade group, said that Jones Act waivers allow flexibility to move American energy efficiently between US ports and deliver fuels to consumers at a time of ongoing global market volatility.

Citing analysts and industry experts, Reuters reported that while the waiver extension allows for greater availability of tankers to move fuel across the country, it would likely reduce gas prices by only a few cents per gallon.

The American Maritime Partnership, which backs the Jones Act, expressed disappointment over the waiver's extension but said the case-by-case review process was preferable to the previous blanket exemption. Further, the group urged the Trump administration to thoroughly assess the national defence justification for each waiver request and determine whether US vessels are available before permitting foreign-flagged ships to transport cargo between US ports.

The extension comes amid heightened global volatility, with disruptions to crude supplies and rising fuel prices adding pressure on the Trump administration to keep energy markets stable.

(with Reuters inputs)