Trump government extends Jones Act waiver by 90 days to dampen oil prices

United States President Donald Trump granted a 90-day extension to a shipping waiver that makes it easier to move oil, fuel and fertiliser around the US, the White House has said, the latest effort to curb rising energy costs linked to the war with Iran.

Friday’s move, even though its impact on lowering prices is questionable, reflects a broader push by the White House to dampen politically sensitive fuel price spikes before November’s midterm elections, where affordability is expected to be a defining issue for voters.

The Jones Act requires that goods hauled between US ports be moved on US-flagged vessels. Passed in 1920, this law aims to protect the US shipping sector, but it has also faced criticism over the years for slowing the delivery of goods, including critical aid during times of crisis.

In March, the White House said it would suspend Jones Act requirements for 60 days, in a measure amid wider efforts to counter steep oil prices and cargo disruptions due to the war. The Jones Act is often blamed for making gas, in particular, more expensive. Still, several analysts and industry groups say this waiver will do little to ease consumers’ fuel bills today.

The Center for American Progress estimated in March that waiving the Jones Act would decrease East Coast gas prices by a modest 3 cents, but potentially raise costs on the Gulf Coast. And the move “would also sideline American shipbuilders and workers and allow the oil industry to continue to profit from high prices while reducing transport costs”, the research and policy think tank said.

White House spokeswoman Taylor Rogers confirmed on Friday that Trump had issued the extension.

“This waiver extension provides both certainty and stability for the US and global economies,” Rogers said.

The administration is taking the step of extending the waiver three weeks before its expiration to allow ample time for the maritime industry to ensure sufficient vessels are available, in order to keep moving applicable goods to where they are needed, a White House official said.

The Jones Act has long been a flashpoint between competing economic and national security priorities. Supporters, including US shipbuilders, maritime unions and a number of lawmakers, argue the law is critical to maintaining a domestic shipping industry and merchant marine that can support military logistics and national security.

But critics – including energy producers, refiners and agricultural groups – say the requirement to use US-built and -crewed vessels sharply raises shipping costs and limits capacity, particularly during disruptions, driving up prices for fuel and other goods.

“This extension of an already historically long and ineffective Jones Act waiver is not only an affront to hundreds of thousands of hardworking Americans who put this country first every single day, it sabotages President Trump’s agenda to restore American maritime dominance,” said Jennifer Carpenter, president of the American Maritime Partnership.