5-26-26 *INTERVIEW* Colin Grabow of the Cato Institute on the American Shipbuilding Industry

In a recent episode of this podcast, Ross dives into the world of the Jones Act, a federal law that's been around since the early 1900s. This law has a significant impact on the US shipping industry, making it difficult for Americans to trade and do business with each other. The guest, Colin Grabow, Associate Director at the Cato Institute's Center for Trade Policy Studies, joins the conversation to break down the law's effects and explore its history. The Jones Act requires that any goods moved by water within the US must be transported on a vessel that meets specific criteria, including being US-flagged, owned by Americans, crewed by Americans, and built in the US. However, this leads to a limited number of ships meeting these conditions, resulting in higher transportation costs and a "tax" on domestic commerce. The law has been waived temporarily by President Trump, allowing for the importation of energy products, but its long-term effects on the US economy remain unclear. Colin Grabow shares some striking examples of how the Jones Act affects trade, including the fact that Puerto Rico buys more fuel from the Baltic countries than from the US, despite being farther away. He also highlights the law's failure to create a competitive US shipbuilding industry, citing the country's ranking of 19th in the world in shipbuilding. The conversation raises important questions about the law's continued existence and its impact on the US economy. With the temporary waiver in place, it's clear that there are benefits to be gained from repealing the Jones Act. If you're interested in learning more about this complex issue and how it affects the US, tune in to this episode to hear the full conversation with Colin Grabow.See omnystudio.com/listener for privacy information.