Trump extends shipping waiver for oil, fertiliser by 90 days

President Donald Trump is granting energy companies and commodity traders an additional window to move oil and other goods between U.S. ports aboard foreign-flagged vessels, extending an initiative designed to curb domestic fuel prices, according to Bloomberg.

According to an anonymous White House official speaking ahead of the formal announcement, Trump has authorized a 90-day extension to the waiver of the century-old Jones Act. Normally, this law mandates that all maritime cargo transported between U.S. ports be carried exclusively on ships that are built, owned, flagged, and crewed by Americans.

The renewal arrives just 48 hours ahead of the previous waiver's scheduled expiration. The official noted that the new extension will go into effect at midnight Monday, New York time, preventing any lapse in coverage.


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This move highlights the administration's ongoing anxiety over elevated energy prices stemming from the war in Iran—a concern sharpened by the Democrats' sweeping victory in the November midterm elections, where cost-of-living issues took center stage for voters.

Trump left the current parameters of the exemption unchanged, maintaining the stricter rules he introduced in August that require federal officials to evaluate vessel availability on a case-by-case basis.

Domestic shipbuilders and their congressional supporters had lobbied against renewing the exemption, contending that it weakens long-standing protectionist rules vital to sustaining American shipbuilding capacity. Conversely, oil and chemical producers argue the waiver has been essential for moving crude oil, fertilizer, and other goods between U.S. ports more affordably and efficiently, helping offset global supply shocks triggered by the conflict in Iran and refinery strikes in Russia.

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Government figures reviewed by the Cato Institute show that roughly 338 shipments have been completed using foreign vessels since Trump initially suspended the Jones Act rules in March, encompassing routes such as Texas crude heading to Pennsylvania and propane bound for Puerto Rico.

According to the White House official, California has been the top destination for these shipments, receiving 23 million barrels of additional products, a sharp jump from the 8 million barrels delivered over the same timeframe last year.

In total, the waiver has facilitated the domestic marine transport of an extra 90 million barrels of goods since its inception, predominantly refined fuels. Gasoline, crude oil, and renewable fuels have seen the largest gains, the official stated. Under the most recent iteration of the waiver alone, roughly 13 million barrels were moved, with gasoline accounting for over a third of that volume and crude oil making up about 28%.

Even so, overall reliance on the exemption has declined since the administration narrowed its criteria in August. Under the revised protocol, the U.S. Maritime Administration must verify whether suitable American-owned, -flagged, and -operated ships are available before approving a waiver for any single trip.

Eligible commodities under the exemption include gasoline, jet fuel, crude oil, naphtha, liquefied natural gas, soy oil, and fertilizers.

Trump’s suspension of the Jones Act marks the most extensive and prolonged bypass of the statute in over 70 years. Historically, past administrations only issued targeted, short-term waivers for specific voyages in response to acute emergencies like hurricanes or major pipeline shutdowns.

(With inputs from Bloomberg)