This Law Is Killing US Jobs AND Harming National Security
A century-old protectionist law has devastated America's shipbuilding industry, reducing domestic cargo vessel production to a handful annually while China produces over 4,000 ships.
The Jones Act, enacted over 100 years ago to strengthen the United States merchant marine sector, has instead crippled it through unintended consequences, according to New York Post. President Donald Trump and Congress must now prioritize repealing this failed legislation.
The law mandates that all shipping between American ports utilize vessels that are American-made, American-owned, crewed by US citizens, and registered under the US flag. While designed to protect domestic maritime interests, the regulation has backfired spectacularly.
Manufacturing Costs Drive Industry Collapse
Prohibitively expensive US manufacturing costs, which are transferred directly to shippers and consumers, have made alternative transportation methods far more attractive economically. Imports and land-based freight have become the preferred options, decimating demand for American-built vessels even as construction expenses continue climbing.
The catastrophic outcome speaks for itself: shipyards have shuttered or fallen into obsolescence, mariners are scarce, and the entire Jones Act fleet consists of merely 92 ships. Only 3.9% of domestic American freight travels by sea, compared to 28% in the European Union.
Economic Damage Extends to US Territories
The legislation significantly increases costs for ocean-transported goods, with Puerto Rico, Hawaii, and Alaska bearing the brunt of inflated prices. The shortage of Liquified Natural Gas tankers meeting Jones Act specifications has created such absurd market distortions that New England finds it cheaper to import LNG from foreign sources than purchase American—the precise opposite of protectionism’s intended effect.
America’s shipbuilding industry has essentially flatlined. Despite the United States generating approximately one-quarter of global economic output, it produces less than 1% of the world’s commercial vessels.
Trade Experts Condemn Failed Policy
Economists have long recognized the law as an unmitigated trade policy disaster. Jennifer Chen of Balsa Research, which has monitored industry data, observes that domestic shipbuilding has decreased decade over decade throughout the law’s hundred-year existence.
Beyond economic harm, the Jones Act has failed its national security objectives. The legislation was partly justified as maintaining robust shipbuilding capacity for defense purposes, yet the US military has been forced to charter foreign vessels to transport troops, equipment, and supplies during military operations.
National Security Vulnerability
The strategic implications are alarming. In a prolonged conflict requiring both combat and transport ships, particularly if a blockade prevented allied nations from delivering vessels, America would face severe operational constraints.
With oceans covering 70% of Earth’s surface, maritime capability remains essential for economic prosperity and national defense. The Jones Act has damaged American consumers, eliminated jobs, and weakened security infrastructure for far too long.
This outdated law must be scrapped immediately to restore America’s shipbuilding capacity and competitive position.
With information from New York Post
