Gas Jumped 27%—Then Trump Made This Move

President Trump has temporarily suspended a century-old shipping law that has kept American energy costs artificially high for decades, delivering relief to consumers while exposing how government regulations have strangled our economy.

Story Snapshot

Trump issued a 60-day Jones Act waiver allowing foreign vessels to transport energy between U.S. ports amid war-driven price surges
Gasoline prices jumped 27% following U.S.-Israeli strikes on Iran, with gas reaching $3.60 per gallon nationwide
The 1920 protectionist law restricted domestic shipping to just 54 compliant tankers out of 7,500 globally, driving up transport costs
Waiver could reduce gas prices by 3-10 cents per gallon while ensuring energy supply chains remain operational during Middle East conflict

Trump Acts to Counter War-Driven Energy Crisis

President Trump exercised executive authority to waive the Jones Act for 60 days, enabling foreign-flagged vessels to transport oil, natural gas, coal, and fertilizer between American ports. White House Press Secretary Karoline Leavitt announced the decision mid-March, linking it directly to supply chain disruptions from Operation Epic Fury, the ongoing U.S.-Israeli military campaign against Iran. The waiver targets immediate relief for consumers facing gasoline price increases exceeding 27% since late February, when strikes closed the Strait of Hormuz and sent crude oil benchmarks soaring past $100 per barrel.

Century-Old Law Creates Shipping Stranglehold

The Merchant Marine Act of 1920, commonly known as the Jones Act, requires all goods shipped between U.S. ports to travel on American-built, American-flagged, and American-crewed vessels. This protectionist mandate was intended to strengthen domestic shipbuilding and maritime security, but critics have long argued it creates an effective monopoly that inflates transportation costs. Of approximately 7,500 tankers operating globally, only 54 meet Jones Act compliance standards. This artificial scarcity forces shippers to pay premium rates, costs ultimately passed to American consumers at the pump and in their grocery bills.

Strategic Reserve Releases Fail to Stop Price Surge

Despite releasing 172 million barrels from the Strategic Petroleum Reserve over four months, with the International Energy Agency coordinating an additional 400 million barrels globally, gasoline prices continued climbing. AAA data shows prices rose 60 cents per gallon before the war, reaching $3.60 nationally by mid-March. The Jones Act’s shipping restrictions compounded supply problems, particularly for East Coast markets dependent on domestic energy transfers. Trump’s waiver addresses this bottleneck by opening access to the global tanker fleet, potentially reducing transport costs on routes like Houston to East Coast ports by approximately 10 cents per gallon equivalent.

Limited Relief Exposes Deeper Regulatory Problems

Energy analysts estimate the waiver will reduce gasoline prices between 3 and 10 cents per gallon, depending on specific shipping routes and market conditions. While modest compared to overall price increases, the savings demonstrate how government-imposed restrictions artificially inflate costs even during national emergencies. The Cato Institute’s Colin Grabow has advocated for permanent Jones Act repeal, noting the law particularly hampers energy transport given the limited tanker availability. This temporary suspension reveals what free-market advocates have argued for years: protectionist policies hurt American consumers while benefiting narrow special interests in the domestic shipping industry.

The waiver represents pragmatic crisis management rather than ideological capitulation. Trump framed rising energy prices as beneficial for American producers on Truth Social, while simultaneously taking action to ease consumer pain. This balances support for domestic energy production with recognition that war-driven supply disruptions require flexible responses. The 60-day timeframe allows foreign vessels to supplement American capacity without permanently undermining national maritime interests, though it may establish precedent for future waivers that gradually erode protectionist barriers blocking economic efficiency and energy independence.