Scoop: Trump mulls extending waiver to ease U.S. oil shipments
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President Trump's decision to suspend a controversial maritime law during the Iran war has made it easier to ship oil across the U.S. — and now he wants to keep it that way, according to U.S. officials.
Why it matters: Known as the Jones Act, the 1920 law raises the cost of shipping between U.S. ports because it requires goods to be carried on American-flagged vessels, which are in relatively short supply compared to the global supply.
- Trump issued a 60-day waiver from the law on March 18 to make shipping oil easier in response to rising fuel prices from the Iran war.
Zoom in: Since then, 40 tankers have been able to deliver oil between U.S. ports from California to Texas to Florida and Alaska, increasing the de facto fleet by 70% and helping to reduce costs as a result, according to data provided to Axios by the White House.
- Total American oil shipped by these foreign-flagged vessels under the waiver: 9 million barrels and counting.
- Administration officials say the impacts have been notable in Alaska, where the jet fuel slated to be imported under the waiver is roughly equal to half the state's average monthly consumption.
Friction point: Libertarians hate Jones Act because it raises costs, but protectionists argue it helps keep U.S.-flagged vessels on the water.
- "Waiving the Jones Act would allow ships licensed and built outside the United States (including by China) to take work away from Americans in our home markets," according to an analysis by the conservative Hudson Institute.
- "It could harm the tens of thousands of American workers and tens of billions of dollars invested in America's shipping and shipbuilding industries."
Counterpoint: The libertarian Cato Institute called the law "an archaic, burdensome law has been able to withstand scrutiny and persist for almost a century."
- "There is an asymmetry of motivations among those who benefit from the Jones Act's protections and the vastly greater number who bear its costs."
What they're saying: One Trump adviser who has discussed the act with the president said Trump "likes what he sees."
- "As long as the Iranians are a threat and raising fuel prices, the president would like to keep the waiver in place for as long as is necessary," the adviser said.
- White House spokesperson Taylor Rogers said no final decisions have been made on whether to extend the Jones Act waiver, but the administration has mitigated cost increases and "the data reveals more supply has reached U.S. ports faster."
