HONOLULU, November 15, 2026 — President Donald Trump has extended the Jones Act waiver for another 90 days, allowing foreign-flagged tankers to transport energy products between U.S. ports, a move that could impact fuel costs in isolated domestic markets like Hawaii. The waiver extension comes as the Iran war continues to disrupt energy supplies, and the White House looks to offer relief.
Background And History
The Jones Act, also known as Section 27 of the Merchant Marine Act of 1920, requires goods transported by water between U.S. ports to be carried on ships constructed in the U.S., flying the U.S. flag, owned by U.S. citizens, and crewed by U.S. citizens or permanent residents. This federal maritime law has been in place for over a century, with the goal of promoting and maintaining the American merchant marine. However, economists argue that the legislation reduces domestic waterborne trade and increases consumer prices.
How The Domestic Shipping Monopoly Works
The Jones Act creates a domestic shipping monopoly, where goods transported between U.S. ports must be carried on U.S.-built, U.S.-flagged, and U.S.-owned vessels crewed by American mariners. This restriction can lead to higher shipping costs and reduced competition, ultimately affecting the prices of goods, including fuel, in isolated domestic markets like Hawaii. According to Jonathan Helton, senior policy analyst for the Grassroot Institute of Hawaii, Hawaii typically imports all its propane from Canada, as there is not a single tanker in the Jones Act fleet capable of carrying propane.
The Numbers
Since the waiver was first introduced in March, nearly 350 shipments have been made under the waiver, including three fuel shipments and one propane shipment to Hawaii. A poll conducted by Public Opinion Strategies found that 73% of registered voters favored extending the waiver. However, critics argue that the waiver has had little effect on reducing prices, with fuel prices remaining above prewar levels.
Regional Implications
For isolated domestic markets like Hawaii, the Jones Act waiver can have significant implications for fuel distribution and energy pricing. With the waiver extension, Hawaii can continue to receive shipments of fuel and propane from foreign-flagged vessels, potentially reducing costs and increasing competition. However, the long-term impact of the waiver on the domestic shipping industry and national security remains a topic of debate.
What Comes Next
The Jones Act waiver extension will last through mid-February, providing temporary relief to consumers and the shipping industry. However, the debate over the Jones Act and its impact on domestic shipping and national security is likely to continue. As the American Maritime Partnership stated, “AMP calls for a prompt end to the waiver and looks forward to working with the Administration to advance our shared goal of restoring American maritime dominance by unleashing investment in rebuilding and growing the U.S. domestic fleet.” The bottom line is that the Jones Act waiver extension will continue to shape the domestic shipping industry and energy pricing in isolated markets like Hawaii, with the figure that matters being the 90-day extension period, set to expire in mid-February.
Sources
- Merchant Marine Act of 1920
- Statement on White House Decision to Extend Jones Act Waiver by 90 Days – American Maritime Partnership
- Taxpayers Applaud President Trump’s Waiver of the Jones Act Shipping Bottleneck
- Trump reportedly extends Jones Act waiver as debate over savings continues
- Jones Act waiver extended again
- Ex-LSU Star Seemingly Makes 180-Turn On Lane Kiffin's Pre-Game Act After Criticizing Shaquille O'Neal & Angel Reese for Walking Down Tiger Walk
Photo: GuavaTrain (CC0)
