Trump issues 60-day waiver of Jones Act
- Admin
- Mar 19
- 2 min read
By Mar-Vic Cagurangan
President Trump has issued a 60-day waiver of the Jones Act, allowing foreign ships to move fuel between U.S. ports to mitigate the disruptions to the oil market, the White House announced Wednesday.
"This action will allow vital resources like oil, natural gas, fertilizer and coal to flow freely to U.S. ports for sixty days, and the administration remains committed to continuing to strengthen our critical supply chains," White House press secretary Karoline Leavitt said in a social media post.
The Jones Act waiver is aimed at controlling energy prices surge amid the escalating war in Iran, which caused the blockade the Strait of Hormuz, a narrow waterway that carries about one-third of the global oil supply.
The law, also known as the Merchant Marine Act of 1920, requires goods shipped between American ports to be carried on ships that are U.S.-built, -flagged and -crewed, and also limits the number of tankers domestic shippers can use.
Guam Del. James Moylan said the temporary waiver is expected to help stabilize fuel supply and ease price pressures that directly impact the cost of electricity, transportation, and the overall cost of living for families in Guam.
The Jones Act has been considered an economic albatross for Guam, where consumer prices are 1.24 times higher than the U.S.
While Guam obtains fuel supply from Singapore, the island relies on U.S. sources for most consumer items.
"I appreciate the administration’s decision to provide flexibility during a time
when global conditions are placing pressure on energy supply chains," Moylan said in a statement.
Read related stories
Critics argue that the Jones Act has created monopolistic conditions, inflated shipping costs and reduced competition, especially in non-contiguous jurisdictions such as Hawaii, Guam, Alaska and Puerto Rico.
"For this reason, I have continued raising these challenges through forums such as the Interagency Group on Insular Areas and in discussions with federal partners to ensure Guam’s unique circumstances remain part of the national conversation," Moylan said.
"While this waiver comes during a time of global uncertainty, it demonstrates that targeted flexibility can provide real relief when supply chains are under pressure," he added.
ADVERTISEMENT
The current oil market disruption is the largest in history, according to the International Energy Agency.
The last Jones Act waiver was issued in 2022 during the Covid‑19 pandemic. At that time, the Biden administration temporarily suspended the law’s requirements for certain U.S.‑flagged vessel operations to allow some cargo to be transported on foreign‑flagged ships to ease supply chain disruptions and support the global pandemic response
During his first term in office, Trump temporarily suspended the Jones Act in 2017 to facilitate aid for Puerto Rico, following Hurricane Maria that shattered the U.S. territory.
"My hope is that this step can serve as a foundation for broader discussions on long-term solutions that address the unique shipping and energy challenges facing Guam and the territories," Moylan said.
Subscribe to
our digital
monthly issue
