The Trump Administration makes another U-Turn on Its trade policies: Jones Act suspended to curb Oil Prices

The Trump administration marks yet another reversal of its strict protectionist policies. The President of the United States has been forced to suspend the Jones Act for a period of 60 days, with the primary goal of curbing the surge in gas and oil prices, exacerbated by recent tensions in the Middle East, for which the tycoon can be considered partly responsible.

What the Jones Act Is

The Jones Act is a century-old law that regulates maritime trade between U.S. ports. The legislation requires that goods transported by sea within national borders must travel exclusively on ships that are built in the United States, fly the American flag, and have a crew composed of U.S. citizens. Originally intended to support the domestic shipbuilding industry and merchant marine, the law is often criticized for raising logistical costs that are ultimately passed on to consumers.

A Geopolitical and Economic Shift

This decision follows the recent announcement (the so-called Warner statement), which allowed the resumption of certain transactions involving Russian oil to stabilize global markets. With the new Jones Act waiver, the President has authorized international tankers and cargo ships to operate on domestic routes, facilitating the unloading of vital raw materials at U.S. ports to address supply shortages.

Time Constraints and Legislative Process

However, this “step back” is strictly temporary. The administrative waiver is valid for a maximum of 60 days, justified by national security and immediate economic needs. Should the emergency persist, the President cannot act unilaterally: congressional action (from both the House of Representatives and the Senate) would be required for a structural amendment or an extension of the law.

Benedetta Zimone