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

Move is part of a broader US push to curb politically sensitive fuel price spikes before November’s midterm elections, even though impact on lowering fuel prices is questionable.

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.

Recommended Stories

• list 1 of 4US Justice Department drops criminal probe of Fed chair Jerome Powell
• list 2 of 4Russian oil exports slump as Ukraine hammers ports and refineries
• list 3 of 4How Israel targeted and killed Lebanese journalist Amal Khalil
• list 4 of 4Trump administration to prioritise seeking death penalty, use firing squads

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.

Falling approval

Recent polling suggests Trump and Republicans losing ground on the economy – once a core political strength – with approval of his economic handling falling sharply and rising gasoline prices weighing heavily on public sentiment.

Some 77 percent of registered voters in a Reuters/IPSOS poll, which concluded early this week, said Trump bears at least a fair amount of responsibility for the recent rise in gas prices, which was prompted by his decision to launch a war, together with Israel, on Iran.

The view was widely shared across the political spectrum, with 55 percent of Republican voters, 82 percent of independents and 95 percent of Democrats pinning blame on the president for the higher costs.

Trump has said crude and gasoline prices are likely to fall once the Iran conflict subsides, but analysts caution that costs could remain elevated even after hostilities end, as supply disruptions, higher shipping costs and a lingering geopolitical risk premium continue to ripple through global energy markets.