Trump Extends Jones Act Waiver 90 Days for Energy and Fertilizer Shipping

President Donald Trump extended a waiver of the century-old Jones Act for an additional 90 days on Monday, allowing foreign-flagged ships to continue transporting oil, refined fuels, fertilizers, and other agricultural commodities between US ports — a signal that the administration is preparing for continued energy market disruption as the Strait of Hormuz remains effectively closed.

What the Extension Covers and When It Takes Effect

The new 90-day waiver takes effect August 17 and covers cargo that are sources of energy and commodities related to agriculture, including fertilizers and soybean oil. Unlike previous Jones Act waivers issued during the Iran war, the extension introduces a new oversight mechanism: the Pentagon will consult with the Maritime Administration to decide which specific voyages qualify for the exemption from the 1920 maritime law.

The Trump Jones Act waiver foreign ships energy 2026 extension is the latest in a series of suspensions that began March 17, when the White House first waived the act to ease the flow of oil and refined fuels between US ports in the wake of the war with Iran. Previous waivers had applied more broadly; the new version narrows the scope while maintaining the core energy and agricultural exemptions.

What the Jones Act Is and Why It Matters

The Jones Act — formally known as the Merchant Marine Act of 1920 — requires that cargo transported between US ports be carried on ships that are US-built, US-flagged, US-owned, and crewed by American workers. The law was enacted to protect the domestic shipping industry after German U-boats decimated the American merchant fleet during World War I. It has faced periodic criticism over the years for raising the cost of domestic goods transport, particularly in island states like Hawaii, Alaska, and Puerto Rico.

The law can be waived by the executive branch “in the interest of national defense.” The Trump administration invoked that authority after the Iran war-driven closure of the Strait of Hormuz disrupted global oil flows and sent energy prices sharply higher across the United States.

White House spokeswoman Taylor Rogers said the administration extended the waiver “to ensure our military and key industries maintain uninterrupted access to critical resources,” adding that the waiver has already increased domestic deliveries of gasoline, diesel, and jet fuel since it was first imposed in March.

A Signal That the Hormuz Crisis Is Far From Over

The 90-day extension — which would run through mid-November — comes as the latest US-Iran diplomatic signals have failed to produce the Hormuz deal that Treasury Secretary Scott Bessent suggested last week was imminent. The extension’s length and timing suggest the administration does not expect the strait to reopen to normal traffic in the near term, despite ongoing talks between Oman and Iran on a new shipping route framework.

The decision to extend drew criticism from some lawmakers who have opposed the waivers from the start. Congressman John Garamendi of California said the waivers undermine the administration’s “America First” agenda by disadvantaging US-flagged vessels and weakening the domestic maritime industrial base. “The only way to lower energy costs for Americans is to end his war with Iran,” Garamendi said when the first waiver was issued in March.