Trump's Shipping Waiver Fails to Boost Domestic Oil Flows

Analysts say the policy change has had minimal impact on U.S. oil supply so far.

Apr. 7, 2026 at 12:20am

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent the complex global oil trade and transportation networks.The global oil trade's intricate web of arbitrage opportunities limits the impact of domestic policy changes on domestic fuel supply.NYC Today

A recent move by former U.S. President Donald Trump to allow foreign-flagged cargo ships to transport fuel and other goods between domestic ports has not significantly boosted American oil supply, according to trade data and industry analysts. Experts note that global arbitrage opportunities involving various continents have limited the potential for vessels to move Gulf Coast products to the Northeast.

Why it matters

The shipping waiver was intended to increase the flexibility and efficiency of domestic oil transportation, but its limited impact highlights the complex global dynamics of the energy market. This story underscores the challenges policymakers face in trying to directly influence domestic energy supply and distribution.

The details

Trump's executive order in 2025 temporarily suspended the Jones Act, which normally requires goods shipped between U.S. ports to be transported on American-built and -operated vessels. The goal was to ease fuel shortages and price spikes, particularly in the Northeast. However, trade data and analysts indicate the waiver has had little tangible effect so far, as global arbitrage opportunities have drawn ships to more lucrative international routes.

  • Trump issued the shipping waiver in 2025.
  • The waiver was intended to address fuel shortages and price spikes, particularly in the Northeast.

The players

Donald Trump

The former U.S. President who issued the executive order suspending the Jones Act to allow foreign-flagged cargo ships to move fuel and other goods between domestic ports.

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The takeaway

This story highlights the complex global dynamics of the energy market and the challenges policymakers face in directly influencing domestic oil supply and distribution. Despite the Trump administration's efforts to increase flexibility through the shipping waiver, the lure of more lucrative international routes has limited its impact so far.