Trump SUSPENDS Act In Bid To Ease Gas Price Panic

Trump’s potential Jones Act waiver could unlock foreign tankers to slash soaring fuel prices—but will it truly deliver relief or just expose America’s shipping vulnerabilities?

Story Snapshot

Trump administration eyes 30-60 day Jones Act suspension amid Iran war-driven fuel spikes to $3.60/gallon gas and $4.89/gallon diesel.
Rare emergency move allows foreign vessels to haul U.S. oil and gas between domestic ports, bypassing century-old law’s strict rules.
Only 54 compliant U.S. tankers exist versus 7,500 global options, creating massive capacity crunch.
Experts predict modest savings of 3-10 cents per gallon, paired with Strategic Petroleum Reserve release.
Framed as national defense necessity, not permanent repeal, testing domestic industry vs. consumer relief.

Jones Act Origins and Strict Requirements

Congress passed the Jones Act in 1920 to mandate U.S.-built, U.S.-flagged, and U.S.-owned vessels for all domestic shipping. This law protects national security by sustaining American shipbuilding and a ready merchant fleet for military needs. Domestic tankers cost far more than foreign ones, limiting options during crises. Global tanker fleet numbers nearly 7,500, but only 54 meet Jones Act standards, choking fuel distribution to coasts.

Iran Conflict Ignites Fuel Price Surge

U.S. and Israeli strikes on Iran February 28, 2026, prompted Iran to block Strait of Hormuz traffic, disrupting one-fifth of world oil flows. Brent crude jumped 8% past $100/barrel from $60 in January. West Texas Intermediate hit $95.02/barrel, up 9%. Gasoline reached $3.60/gallon, highest since May 2024; diesel $4.89/gallon, peak since 2022. International Energy Agency called it history’s largest oil supply shock.

White House Signals Temporary Waiver

March 12-13, 2026, spokeswoman Karoline Leavitt announced consideration of Jones Act waiver for national defense, ensuring energy and farm goods flow to ports. She stressed no final decision. Proposed term spans 30-60 days. Trump team released 172 million Strategic Petroleum Reserve barrels, joining global IEA emergency drawdown. Officials dubbed price hikes “short-term disruption for long-term gain,” betting public tolerance holds one month.

Homeland Security and Defense leaders hold waiver authority under defense clauses. Past uses targeted Hurricane Harvey, Maria, Sandy, and pipeline failures—always temporary.

President Trump waives Jones Act for 60 days in effort to ease energy prices. https://t.co/FkRisX7GQH

— CBS News (@CBSNews) March 18, 2026

Stakeholders Clash Over Economic Tradeoffs

Trump administration prioritizes consumer relief against shipbuilding backlash. Energy firms and refiners favor cheaper foreign shipping to Northeast and West Coast. U.S. shippers and builders oppose, fearing competition erodes protections. Consumers stand to gain pennies at pumps. Foreign operators eye lucrative routes. Congress watches without stated stance. Common sense aligns with temporary fix: protect families from war-fueled inflation without gutting American jobs long-term.

Projected Impacts and Expert Views

Waiver expands capacity for oil, gas, diesel, LNG, fertilizer via foreign tankers. Center for American Progress forecasts 3 cents/gallon gas drop. Analysts see 5-10 cents slowdown in rises. East Coast savings hit $0.63/gallon gas, $0.82 diesel, $0.80 jet fuel per barrel equivalent. Peter Harrell, ex-Biden economist, calls it “small but useful” on prices, minimal shipyard harm. Cato’s Colin Grabow slams Act’s energy curbs. Relief tempers oil shock but won’t fully counter it. Facts support pragmatic conservatism: act decisively in crisis, revert to self-reliance.