President Donald Trump has approved an extension of the Jones Act waiver, which requires U.S.-built and crewed ships for domestic cargo, with some limitations. The waiver aims to increase shipping flexibility and lower energy prices.
The extension of the Jones Act waiver aims to mitigate rising energy costs for consumers and address political pressure ahead of elections, while also balancing the interests of the domestic maritime industry.
President Donald Trump has approved an extension of the waiver for the Jones Act, a century-old shipping law, though with certain limitations, according to a White House official. The Jones Act requires that cargo transported between U.S. ports must be carried on ships built in the U.S., owned by American companies, and crewed by American workers.
The waiver aims to reduce energy prices by increasing shipping flexibility and alleviating transport bottlenecks. The current suspension was scheduled to expire on August 16, and its extension marks the longest period of suspended Jones Act restrictions in history, spanning nearly five months. This move comes as the Trump administration faces pressure to lower gasoline prices, which are averaging over $4 a gallon, ahead of the midterm elections.
While the waiver has been utilized for nearly 200 voyages transporting various commodities, including crude oil and natural gas, it has drawn criticism from American maritime companies. These companies argue that the waiver undermines the domestic shipping industry. Administration officials have been in discussions with industry representatives and lawmakers to potentially narrow the waiver's scope while maintaining flexibility for critical fuel supplies.
Energy Secretary Chris Wright expressed optimism that the waiver has contributed to lower energy prices on the East Coast and in California, and anticipates further price decreases in the coming weeks. President Trump has also publicly urged major oil companies like ExxonMobil and Chevron to pass on their profits to consumers at the pump.