Trump extends Jones Act waiver for 90 days, narrows scope

The Trump administration extended a Jones Act waiver for 90 days but narrowed its scope, limiting the types of fuel and routes eligible for foreign-flagged vessels to move cargo between U.S. ports. The waiver, originally issued after Hurricane Helene and set to expire this week, now covers only specific refined petroleum products and restricts deliveries to East Coast and Gulf Coast terminals, according to a notice published by U.S. Customs and Border Protection.

The Jones Act requires vessels transporting goods between U.S. ports to be U.S.-built, U.S.-flagged, and crewed by U.S. citizens. Waivers are rarely given and typically follow natural disasters that disrupt domestic shipping capacity. The narrower language of this extension suggests the administration is trying to address regional fuel tightness without opening a broader exception that could undermine the domestic maritime industry, analysts said.

Refiners along the Gulf Coast may see reduced competition from foreign ships on some routes, keeping domestic freight rates higher for certain movements. The limited waiver could still help ease local supply constraints, particularly for heating oil and diesel ahead of the winter heating season, according to a research note from ClearView Energy Partners. The restriction means less relief for suppliers in the Northeast who had hoped for broader access to foreign tankers. It also avoids a longer-term erosion of domestic shipping capacity, analysts said.