President Donald Trump has temporarily waived a century-old shipping law to allow oil and other resources to flow to the United States, a White House official told FOX Business on Wednesday.
Trump issued a 60-day waiver of the Jones Act, a mandate that only U.S. ships carry cargo between U.S. ports and stipulates that at least 75% of the crew members are American citizens. Additionally, it demands these ships are built in the U.S. and owned by U.S. citizens.
“President Trump’s decision to issue a 60-day Jones Act waiver is just another step to mitigate the short-term disruptions to the oil market as the U.S. military continues meeting the objectives of Operation Epic Fury,” White House press secretary Karoline Leavitt said in a statement on X. “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.”
The war with Iran has effectively closed the Strait of Hormuz, a vital oil chokepoint that sees ships carry about a fifth of the world’s oil out of the Gulf region. Iran’s stranglehold and threats to ships in the narrow passageway has sent oil prices above $100 per barrel.
US BUNKER-BUSTER BOMBS HAMMER IRANIAN ANTI-SHIP MISSILE SITES NEAR STRAIT OF HORMUZ
Proponents of the Jones Act claim it beefs up national security, prevents foreign countries from accessing the U.S. and protects the American shipbuilding sector. Critics, however, argue that the 1920s law is outdated and hampers competitiveness in the industry while driving up shipbuilding costs.
The American Maritime Partnership told FOX Business in a statement on Wednesday that it had concerns about Trump’s waiver.
“We are deeply concerned about this 60-day, broad waiver being abused and unnecessarily displacing American workers and American companies,” it said. “The law sets a high bar: this waiver exists solely to address an immediate threat to military operations, not to displace American workers or reward foreign operators. Every vessel movement under this waiver must be publicly disclosed and justified according to federal law. We will be watching closely — and so will the American public.”
“We also reiterate that this waiver will not reduce gas prices,” it said. “The maximum potential impact of domestic shipping on the cost of gasoline nationwide is less than one penny per gallon.”
TRUMP WARNS NATO OF ‘VERY BAD’ FUTURE IF ALLIES DON’T HELP SECURE STRAIT OF HORMUZ
Even with oil prices surging and appeals from Trump and Washington, U.S. allies are declining to take part in military efforts to secure the Strait of Hormuz.
Trump on Wednesday appeared to call out these allies in a post on his Truth Social platform.
“I wonder what would happen if we ‘finished off’ what’s left of the Iranian Terror State, and let the Countries that use it, we don’t, be responsible for the so called ‘Straight?’ (sic) That would get some of our non-responsive ‘Allies’ in gear, and fast!!!” Trump wrote.
Previous instances in which the Jones Act has been temporarily waived include responses to major hurricanes, such as Hurricane Katrina in 2005 and Hurricanes Harvey and Irma in 2017.
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