Trump waives the Jones Act for 60 days to allow foreign ships to ease rising fuel costs amid the ongoing conflict with Iran.
United States President Donald Trump has temporarily lifted the Jones Act to allow foreign ships to carry cargo between US ports in a bid to ease rising fuel costs during the war with Iran, reports Al Jazeera.
The White House issued a 60-day waiver, permitting foreign-flagged vessels to transport goods domestically. The Jones Act normally requires US-built, US-flagged, and mostly US-owned ships for such trade, a rule backed by maritime unions.
Industry groups questioned the move's effectiveness, stating that crude oil costs drive petrol prices rather than domestic shipping. The American Maritime Officers union warned that the waiver benefits foreign operators who avoid US taxes and labor standards.
The administration defended the measure, asserting that it would reduce shipping costs and speed deliveries of oil, gas, fertilizer, and coal. White House press secretary Karoline Leavitt stated that the waiver supports the release of 172 million barrels from the Strategic Petroleum Reserve.
The war has disrupted shipping through the Strait of Hormuz, where nearly a fifth of global oil and gas passes. Since fighting began on February 28, only about 90 ships have transited, with 20 attacked and more than 400 stranded, according to Kpler.
Fuel prices have spiked, with US petrol averaging $3.84 a gallon, up from $2.92 a month earlier. Analysts said the waiver may offset 3 to 10 cents per gallon but will not materially lower costs.
US markets fell after the announcement, with the Dow Jones down 0.8 percent, while shipping stocks rose. Maersk shares gained 2.5 percent and Hapag-Lloyd rose 2.6 percent.
