Trump SCRAPS 100-Year Law On Desperate Move

President Trump waives the century-old Jones Act for 60 days, unleashing foreign ships on U.S. waters to battle skyrocketing fuel prices from the Iran war—but will it truly deliver relief or just expose America’s shipping vulnerabilities?

Story Snapshot

Trump administration invokes rare emergency waiver after U.S.-Israel strikes on Iran disrupt global oil, spiking gas to $3.60/gallon and diesel to $4.89/gallon.
Only 54 U.S.-compliant tankers exist worldwide versus 7,500 foreign options, creating severe domestic shipping bottlenecks.
Waiver allows foreign vessels to shuttle oil, gas, and diesel between U.S. ports for 60 days, framed as national defense against inflation.
Experts predict modest savings: 3-10 cents per gallon on gas, with bigger drops on East Coast fuels, alongside Strategic Petroleum Reserve release.
Shipbuilders oppose; energy firms and consumers stand to gain from expanded capacity amid Strait of Hormuz blockade.

Jones Act Origins and Strict Requirements

Congress passed the Jones Act in 1920 to mandate U.S.-built, U.S.-flagged, and U.S.-owned vessels for all domestic shipping. This law protects national security by sustaining American shipbuilding and a ready merchant fleet for military needs. Foreign ships face total prohibition on coast-to-coast hauls, ensuring only domestic operators serve routes from Gulf refineries to Northeast ports. Violations carry steep penalties, reinforcing the statute’s iron grip on maritime trade.

Iran Conflict Ignites Fuel Crisis

U.S. and Israeli forces struck Iran on February 28, 2026, prompting Tehran to choke the Strait of Hormuz, which handles one-fifth of global oil. Brent crude surged 8% past $100 per barrel; West Texas Intermediate hit $95.02. Gasoline prices climbed to $3.60 per gallon, highest since May 2024. Diesel reached $4.89, echoing 2022 peaks. These shocks exposed Jones Act limits, as U.S. tankers proved too few and costly to meet surging demand.

Waiver Announcement and White House Rationale

On March 12-13, 2026, spokeswoman Karoline Leavitt announced consideration of a Jones Act waiver for national defense. Trump finalized a 60-day suspension, allowing foreign tankers to transport oil, gasoline, diesel, LNG, and fertilizer between U.S. ports. Officials paired this with releasing 172 million barrels from the Strategic Petroleum Reserve, matching the largest International Energy Agency emergency draw ever. Leavitt stressed short-term disruption yields long-term gains against Iranian aggression.

Past waivers occurred only in disasters like Hurricanes Harvey, Maria, and Sandy, plus pipeline failures. This marks a rare peacetime use tied to war-driven economics. Homeland Security and Defense leaders hold waiver authority, signaling unified executive action.

Stakeholder Reactions and Economic Projections

Energy companies cheer expanded capacity to ship Gulf fuel to vulnerable Northeast and West Coast markets. Consumers eye modest relief. U.S. shipbuilders and domestic operators decry foreign competition eroding protections. Congress remains silent in reports. Analysts diverge: Center for American Progress sees 3 cents per gallon gas savings; others forecast 5-10 cents, with East Coast drops of $0.63/gallon gasoline, $0.82 diesel, $0.80 jet fuel per barrel. Peter Harrell calls it a small but useful price impact with negligible shipyard harm.

President Trump waives Jones Act for 60 days in effort to ease energy prices. https://t.co/FkRisX7GQH

— CBS News (@CBSNews) March 18, 2026

Expert Views Align with Conservative Priorities

Colin Grabow of Cato Institute highlights Jones Act curbs on energy transport options, urging broader reform. Energy experts agree the waiver aids Gulf-to-coast flows but won’t fully counter global oil shocks. From a common-sense view, Trump’s temporary fix prioritizes American families over special interests, echoing conservative values of decisive leadership in crises. Facts support modest gains without permanent concessions, preserving domestic industry long-term while delivering immediate consumer relief.