Why Trump’s Waiver of the Jones Act Is Unlikely To Lower Gas Prices
U.S. President Donald Trump is weighing another suspension of the Jones Act as gasoline prices above $4 a gallon threaten to become a liability for Republicans heading into the midterm elections. The move would again open domestic oil and fuel shipments to cheaper foreign-flagged vessels, extending an emergency waiver Trump imposed after the Iran war sent crude prices sharply higher in March. The…
President Donald Trump is considering reinstating a waiver that suspends the Jones Act, a law that restricts the type of ships allowed to transport goods between U.S. ports. The move comes amid high gasoline prices, currently above $4 a gallon, which could negatively impact Republicans ahead of the midterm elections. The waiver, initially granted for 60 days in March, would allow foreign-flagged vessels to transport oil and refined petroleum products between U.S. ports, potentially lowering costs.
However, the first waiver had little effect on gasoline prices, and shipping costs make up only a small portion of the overall price. Trump has also criticized Big Oil companies like ExxonMobil and Chevron for high profits, accusing them of price gouging. Despite this, extending the Jones Act waiver appears to be a less viable option, as Big Oil has shown no signs of complying with Trump's demands.
The initial waiver, set to expire on August 16, has already revealed that about 95% of voyages were handled by foreign operators. Critics argue that the waiver has failed to lower fuel prices while creating uncertainty for the maritime and shipbuilding sectors. The political pressure to address high gas prices will likely increase as the election approaches, with a recent poll showing that 46% of respondents believe gas prices will influence their vote.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
