Trump Should Permanently Expand Jones Act Waiver to Allow Foreign Ships in Domestic Trade
Source: Jeremy Lott. "Trump Should Expand Waiver Of Shipping Law Hurting Americans." April 8, 2026. thefederalist.com
The Gist
The author argues that a 100-year-old law requiring domestic shipping to use expensive American-built ships should be permanently waived. Since the U.S. barely builds large ships anymore and the law artificially limits shipping options, getting rid of it would lower costs for consumers, especially in Hawaii, Alaska, and Puerto Rico.
Conclusion
The Trump administration should extend its 60-day Jones Act waiver indefinitely and expand it to include all U.S.-flagged vessels
Premises
- The Jones Act is outdated protectionist legislation from 1920 that requires domestic shipping to use U.S.-built, U.S.-flagged, U.S.-crewed vessels with 75% American ownership
- There is no significant U.S. shipbuilding industry for large ocean vessels due to cost differences exceeding $100 million per ship compared to foreign construction
- Only fewer than 100 Jones Act-compliant vessels exist, with just one large LNG tanker for domestic transport
- The law creates artificial scarcity by preventing 93 U.S.-flagged but foreign-built ships from engaging in domestic commerce
- Outlying states and territories like Hawaii, Alaska, and Puerto Rico face especially high costs and isolation due to these restrictions
- Maritime union arguments are contradictory - claiming both that foreign competition is unfair and that domestic shipping has negligible price effects
- The president has broad legal authority to waive the Jones Act for national security reasons without declaring an emergency
Assumptions
- Market efficiency should take precedence over protectionist policies
- The original justification for the Jones Act (post-WWI surplus ships) no longer applies
- Lower shipping costs would benefit American consumers
- Foreign vessels can operate safely in U.S. waters
- Economic integration of outlying territories is desirable