Trump Considers Merchant Marine Act of 1920 Waiver

The Donald Trump administration is considering a temporary waiver of the century-old Merchant Marine Act of 1920 to address spiking fuel prices and disruptions in energy and agricultural shipments. This move is a response to Iran-related supply issues, particularly attacks on oil tankers in the Strait of Hormuz, which have driven U.S. gasoline and diesel prices to multi-year highs. The Merchant Marine Act of 1920 mandates that goods shipped between U.S. ports must be carried on U.S.-built, U.S.-flagged, and mostly U.S.-owned vessels. Waiving this rule would allow foreign ships to transport fuel and agricultural necessities, potentially lowering shipping costs and speeding deliveries, especially to import-reliant regions like the West Coast and Northeast. While maritime labor unions oppose the waiver, arguing crude oil prices are the main driver of fuel costs, the American Farm Bureau Federation supports it to improve domestic transportation capacity and prevent fertilizer price spikes. The decision carries political risks for Donald Trump and the United States===Republican Party (United States) ahead of the November midterm elections, as voters are sensitive to inflation.