U.S. President Donald Trump has suspended the century-old Merchant Marine Act — better known as the Jones Act — to reduce the cost of transporting oil, gas, and other commodities within the United States.

Under Trump's order, the waiver will remain in effect for the next 60 days, according to a White House statement.

The Jones Act, in its current form since 1920, requires that cargo shipped between U.S. ports be carried only on vessels flying the American flag, built in American shipyards, and owned by American citizens.

Suspending the act will allow foreign vessels to transport certain goods between U.S. ports, including oil, coal, petroleum products, natural gas, LNG, and fertilizers.

"The President's decision to suspend the Jones Act for 60 days is another step to mitigate short-term disruptions in the oil market," White House Press Secretary Karoline Leavitt said, adding that "the President's administration remains committed to further strengthening critical supply chains."

The temporary waiver could ease price pressure by allowing foreign tankers with lower operating costs to carry domestic cargo, Bloomberg notes. The measure is expected to reduce the cost of shipping oil from the Gulf Coast to refineries on the U.S. East Coast, as well as gasoline and diesel to the densely populated markets of the Northeast.