President Donald Trump has issued a 90-day extension of the Jones Act waiver, allowing refiners to ship fuels between U.S. ports with foreign-flagged vessels for longer, despite pressure from the domestic maritime industry.
The action, the third such extension of the waiver, is part of an effort to place downward pressure on fuel prices elevated by the war in Iran.
Recommended Stories
Trump first issued the waiver in March, suspending the law that requires all goods transported between U.S. ports be moved by ships that are U.S.-built, flagged, and crewed. The president later extended the waiver, moving the expiration date to Aug. 16.
White House spokeswoman Taylor Rogers wrote on X that the waiver would ensure that U.S. military and key industries maintain uninterrupted access to the resources.
“Data shows the waiver has driven a significant increase in domestic deliveries of essential products such as gasoline, diesel, and jet fuel,” Rogers said.
As of Aug. 7, 211 vessels have used the waiver, resulting in the transportation of about 55 million barrels of fuel, according to a Cato Institute tracker.
The American Petroleum Institute commended the extension of the waiver. API Senior Vice President of Government Relations Kristin Whitman said in a statement that the extension “will ensure critical fuels reach the regions that need them most while reinforcing America’s resilience amid ongoing global market disruptions.”
However, the administration has faced mounting pressure from some Republican lawmakers and the domestic maritime industry to end the waiver, on the grounds that it hurts domestic shipping jobs.
The extension included new terms, including that the Department of War consult with the Maritime Administration on the availability of Jones Act-qualified vessels and that it narrows the scope of commodities eligible to be shipped.
Jennifer Carpenter, president of the American Maritime Partnership, said in a statement that “we are disappointed that the waiver has been extended when the public record is clear: the waiver has not lowered fuel prices for American consumers and has been used to increase oil traders’ margins, not meet military needs.”
Reuters reported in May that international vessels transporting fuel from the U.S. Gulf Coast to the West Coast would yield savings to consumers of about 6.6 cents per gallon of gasoline, or 1% of California gas prices.
STRATEGIC PETROLEUM RESERVE HITS LOWEST LEVEL SINCE JANUARY 1983
Republican lawmakers have previously spoken out against the waiver. House Speaker Mike Johnson (R-LA), House Majority Leader Steve Scalise (R-LA), and 50 other House Republicans sent a letter to Trump last month asking him to let the waiver expire.
