Keeping Up With the Jones Act

Trump may suspend the 1920 law that hurts the U.S. in war and peace

WSJ editorial. Excerpt:

"The law requires goods shipped between American ports to be transported on vessels that are U.S.-built, -flagged and -owned. Congress intended to boost the U.S. ship industry, but the protectionism has helped to ruin it instead. There are few Jones Act-compliant oil tankers, and they command higher shipping prices than foreign vessels.

America’s shale fracking bounty means the U.S. isn’t hurt as much by oil supply disruptions in the Strait of Hormuz as are Asia and Europe, which depend on the Middle East. Nonetheless, the Northeast and California import much of their oil. California imports about 15% of its refined fuel and 60% of its crude. About 30% of the latter comes from the Middle East."