Trump weighs extending Jones Act waiver again to tame gas prices

The Trump administration is considering relaxing a century-old shipping regulation again to rein in surging gasoline prices. The move would extend a waiver of the Jones Act — which restricts cargo transport between US ports to American-built, American-owned and American-operated vessels — allowing foreign ships to continue carrying fuel domestically.

Reuters reported Tuesday, citing multiple sources, that the administration is strongly considering extending the Jones Act waiver, which is set to expire Aug. 16.

The push comes as US gasoline prices have climbed again amid rising global oil prices driven by the prolonged war with Iran. Washington hopes that keeping foreign vessels in the domestic fuel-transport market will boost supply and ease some of the upward pressure on prices.

Enacted in 1920, the Jones Act requires that cargo shipped between US ports be carried exclusively on vessels built in the United States and owned and operated by Americans. It is widely regarded as a cornerstone protectionist measure designed to safeguard the US maritime industry and national security.

President Trump first suspended the Jones Act for 60 days following the outbreak of the war with Iran in March, then extended the waiver for another 90 days. The current waiver, set to expire Aug. 16, is the longest suspension in the law's history, Reuters said.

In the energy sector, analysts view the Jones Act waiver as one of the few realistic tools available to the Trump administration to address high oil prices.

Bob McNally, president of US energy consulting firm Rapidan Energy Group, said that even if Washington pressed Saudi Arabia to increase output, crude exports could be constrained by the situation in the Strait of Hormuz. "A windfall profits tax or gasoline price controls are not realistic options, so the Jones Act waiver is in effect the card the administration can play," he said.

McNally cautioned, however, that the impact would be limited, projecting that the waiver would shave only a few cents off US gasoline prices, which have risen to around $4 per gallon.

The prospect of another extension has drawn considerable opposition.

The US maritime industry argues that allowing foreign vessels to carry domestic cargo could undermine the foundation of the American shipping sector.

Jennifer Carpenter, president of the US Maritime Partnership, criticized the move, saying it "could result in handing domestic commercial shipping to foreign operators, including companies linked to China and Russia," and called it a measure that would erode the competitiveness of the US maritime industry.

Resistance has also emerged in Congress.

House Speaker Mike Johnson and other Republican lawmakers reportedly sent a letter to President Trump last month urging him not to extend the Jones Act waiver any further.