The Sinking Cost of Protectionism: Why America Needs a New Course on the Jones Act The Trump administration's decision to waive certain provisions of the Jones Act has brought long overdue attention to this anachronistic piece of legislation.
Passed in 1920, the Jones Act is a relic of a bygone era designed to support domestic shipbuilding and protect American mariners at all costs. However, its consequences have been far from benign.
While one might expect a president as protectionist as Donald Trump to be thrilled with the Jones Act's strict regulations on foreign trade, his recent decision to issue waivers for shipments of energy related products and fertilizer – and possibly extend them further – suggests he has come to realize that the act's costs outweigh its benefits.