economy
By waiving the Jones Act, Trump admits protectionism hurts Americans
With oil prices spiking due to the Iranian regime’s closing of the Strait of Hormuz, President Donald Trump has waived restrictions on foreign vessels that transport commodities between U.S. ports for the next 60 days.
TL;DR
- President Trump has waived the Jones Act for 60 days due to rising oil prices and the closure of the Strait of Hormuz.
- The Jones Act, a 1920 law, requires U.S. domestic shipping to use vessels built, owned, and crewed by Americans.
- This law has led to significantly higher costs for consumers and businesses, with crude oil transport tripling in price.
- Despite its protectionist aims, the Jones Act has resulted in a smaller and more expensive U.S. shipping fleet compared to international standards.
- Estimates suggest building ships in the U.S. is five times more expensive than abroad.
- Overturning the Jones Act permanently could lower prices and open trade in the long term.