The David Lin Report Fuel Crisis Spreads Globally: Brace For Price Explosion | Colin Grabow
Mar 29, 2026
Colin Grabow, Associate Director at the Cato Institute specializing in trade policy, discusses how a global fuel shock and Strait of Hormuz closure spike energy costs. He critiques tariffs, the Jones Act, and protectionist rules as hidden price-raising taxes. Short sentences explore shipping constraints, sugar program costs, and policy fixes like repealing tariffs and relaxing shipping rules.
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Remove Costly Trade Rules To Improve Affordability
- Revisit and repeal domestic rules and tariffs that raise consumer costs to boost affordability.
- Colin Grabow suggests removing tariffs, reconsidering the Jones Act, and suspending rules like renewable fuel mandates in emergencies.
US Shipbuilding Costs And Fleet Scarcity Raise Shipping Prices
- U.S. Jones-Act-compliant product tankers cost about $240 million to build versus $50 million in Asia, raising capital and operating costs.
- The U.S. fleet is tiny (54 tankers vs ~7,500 globally), making domestic shipping expensive and scarce.
Localized Estimates Show Big Gains From Jones Act Repeal
- Partial studies show big localized gains from repealing the Jones Act: Puerto Rico ~$1.4B and Hawaii ~$1.2B estimated consumer benefits.
- Smaller studies on East Coast fuel movements estimate roughly $770M in consumer gains.