Trump Extends Again Waiver Allowing Foreign Vessels to Transport Oil and Goods Between U.S. Ports

US President Donald Trump on Monday once again extended the effects of an exemption allowing foreign vessels to transport oil and other goods between US ports, amid disruptions to energy supplies and continued cost increases due to the war with Iran.

The extension of the Jones Act exemption for 90 days comes just before the expiration of a previous exemption, whose effects were scheduled to end in mid-August.

However, the new exemption is narrower in scope than the previous one, focusing more heavily on the transport of energy resources, according to a White House official on Monday.

White House spokesperson Taylor Rogers said, “Today, the Trump administration issued a 90-day extension of the Jones Act exemption to ensure our military and vital industries have continuous access to essential resources.”

The exemption measures this time also require reviews regarding the availability of US vessels before determining whether the exemption applies to individual voyages.

Estimates by Cato Institute experts Colin Grabow and Scott Lincicome indicate that more than 54 million barrels of energy products were transported between US ports on more than 200 sea voyages since March, when the previous exemption was enacted.

Grabow and Lincicome stated, “The exemption enabled domestic trade that the Jones Act had previously prevented.”

They added, “In most cases, these voyages were conducted by vessels unrelated to US adversaries such as China, and supplied US companies with American energy products that would otherwise have been imported at much higher costs.”

The US-Israeli war against Iran has caused the closure of the Strait of Hormuz, a major route for oil and gas transport, leading to disruptions in global supply markets and sharp price increases.

Gasoline prices in the United States have also risen, increasing pressure on household budgets ahead of the crucial midterm elections.

Under the Jones Act of 1920, which aims to encourage the construction of US ships, vessels transporting goods between US ports must be built, owned, and registered in the United States, and fly the US flag.

However, in March, amid worsening economic repercussions of the war, the Trump administration granted foreign vessels a temporary exemption to operate between US ports for 60 days.

Oil prices remain high, even after declining from recent record levels, and negotiations aimed at ending the war and reopening the Strait of Hormuz remain stalled.

Trump announced on Monday that he would seek compensation from Iran for the war as part of any future peace negotiations, recalling attacks and acts of violence dating back decades that are suspected to have been supported or carried out by Iran.