America’s recent attacks on Iran and its immediate effect on fuel prices have spiked calls for the repeal or suspension of the Jones Act, the protectionist maritime law that a 2020 Grassroot Institute of Hawaii policy brief estimated costs Hawaii $1.2 billion a year.
Some of the most recent headlines include “Trump Considers Waiving Jones Act Amid Rising Oil Prices from Iran Conflict,” over a dispatch from SSB/Crack News, which reports on science and technology issues, and “Trump administration considers loosening US shipping rules to combat fuel price spike,” over a Reuters report.
The SSB/Crack News article referenced Grassroot Institute of Hawaii research showing that the Jones Act “has been identified as a central factor in [Hawaii’s] reliance on foreign oil, raising the costs linked to transporting oil from the mainland.” It also quoted Grassroot Scholar Colin Grabow, in his capacity as a trade expert with the Cato Institute, about how the Jones Act has negatively affected America’s shipbuilding capacity.
As that article notes, the Jones Act’s mandate that goods shipped between U.S. points must be on vessels that are flagged and built in the U.S. and mostly owned and crewed by American citizens “has led to inefficiencies, elevating transportation costs for domestically sourced oil and gas, thereby impacting prices for consumers.”
Also beseeching President Donald Trump this week to consider a Jones Act waiver has been Guam Sen. Jesse Lujan. In a KUAM News article headlined “Jones Act waiver for Guam requested to allow fuel shipments amid Iran conflict,” reporter Jason Salas said Lujan framed the issue in his letter to the president as not just about energy prices on Guam, but also national security.
Making the waiver request about national security is critical because Congress tightened the Jones Act in 2021 to allow waivers only “in the interest of the national defense to address an immediate adverse effect on military operations.”
From a historical perspective, suspending America’s protectionist maritime laws during wartime — not just for particular areas such as Hawaii or Guam, but for the whole country — is not a new idea. The precedent occurred during World War I, when such laws were modified or suspended for several years to help win the war.
Since the current surge of requests for Jones Act waivers is primarily the result of U.S. military operations, it would seem there is a clear path for President Trump to issue a waiver or waivers at this time.
Other articles published this week about calls for repeal or suspension of the Jones Act include:
>> “White House considers waiving maritime commerce restrictions as fuel prices skyrocket,” by Jacob Wendler, Politico.
>> “Trump weighs Jones Act waiver amid rising fuel prices, White House says,” by Megan Cerullo and Emma Nicholson, CBS News.
>> “Trump Could Waive Century-Old Jones Act In Bid To Lower Gas Prices,” by Mike Stunson, Forbes.
>> “What Is the Jones Act? Trump Admin Weighs New Move to Curb Gas Prices,” by Andrew Stanton, Newsweek.
>> “Strait of Hormuz Energy Crisis Offers Another Reason to Repeal the Jones Act,” by Vincent H. Smith of the American Enterprise Institute.
>> “Farm Bureau asks for action to protect fertilizer supplies,” by Diego Flammini of Farms.com.
>> “2 U.S. Senators Propose Suspending Gas Tax Until October in Response to Rising Prices,” published by AOL, MSN and Yahoo News Canada.
>> “4 actions the US could take to calm the oil market’s historic Iran-war-driving volatility,” by Samuel O’Brient of Business Insider. (Subscription required)
>> “Can the president bring down gas prices? Here are 5 options available to Trump,” by Aimee Picchi of CBS News.
>> “Trump Weighs Easing Russia Sanctions, Other Measures to Cool Oil Prices,” published by EnergyNow Media.
>> “Trump weighs emergency measures to cool energy prices,” by Keerthi Ramesh of The American Bazaar.
>> “Trump May Waive the Jones Act for Oil Shipments. Let’s Repeal It Instead,” by Joe Lancaster of Reason magazine.
>> “Trump administration starts to panic over rapidly rising oil costs,” by Adam Cancryn of CNN.
>> “Oil’s Wild Day Has Trump Rethinking the Jones Act,” by Bloomberg opinion columnist Jessica Karl. (Subscription required)
