Trump Says He Is Satisfied After Easing the 100-Year-Old Jones Act

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\r\n[Financial News] U.S. President Donald Trump appears increasingly likely to delay enforcement of the Jones Act again, a shipping law long maintained to protect the domestic maritime industry. The move reflects his view that keeping logistics costs down remains a useful policy tool as fuel prices have surged in the wake of the Iran war.
According to Axios on the 21st (local time), Trump is strongly considering extending the waiver of the Jones Act, which allows only U.S.-built ships to transport cargo between U.S. ports. If the waiver is extended, foreign ships would also be allowed to take part in domestic port-to-port transport, which could lower shipping costs.
An aide who discussed the matter with Trump said, "The president is currently satisfied with the waiver," and added, "As long as fuel prices remain high because of the Iran threat, he will try to keep the waiver in place if necessary."
\r\nThe White House is also viewing the waiver’s effects positively. White House press secretary Taylor Rogers said, "The pressure from rising logistics costs has eased significantly, and goods are arriving faster."
The Jones Act, enacted in 1920, is a shipping regulation that restricts cargo transport between U.S. ports to ships built in the USA and owned by Americans. While intended to protect the domestic shipping industry, it has also been criticized for driving up logistics costs by blocking foreign vessels.
On March 18, Trump announced a 60-day waiver of the Jones Act in response to a sharp rise in energy prices caused by the Iran war. It was an unusual decision to temporarily suspend a regulation that has been in place for more than a century.
The waiver has already produced visible results. The size of the fleet in U.S. ports has increased by about 70 percent, and shipping costs have fallen. During this period, more than 9 million barrels of U.S.-produced crude oil were transported on foreign ships.
However, opinions on the policy remain divided. The conservative Hudson Institute said, "A larger inflow of foreign ships could threaten U.S. shipping jobs." By contrast, the Cato Institute argued, "The Jones Act is an outdated regulation that benefits only a few while forcing the majority to bear the costs," and called for its repeal or easing.
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km@fnnews.com Kim Kyung-min Reporter