White House set to extend Jones Act waiver as Trump hunts for cheaper gasoline

• The Jones Act waiver has been used nearly 200 times through end-July and is set to expire August 16, making it the longest suspension in the program's history
• Experts estimate the waiver's impact on gasoline prices is minimal, likely reducing costs by only pennies per gallon despite increased shipping flexibility
• Maritime industry groups and key Republican lawmakers including House Speaker Mike Johnson are pushing to limit the exemption, warning it undermines the domestic fleet and benefits foreign operators linked to China and Russia

Summary: White House Set to Extend Jones Act Waiver to Lower Gasoline Prices

The White House is expected to extend its waiver of the Jones Act in the coming days as President Trump seeks to reduce gasoline prices currently averaging over $4 per gallon ahead of midterm elections. The waiver, set to expire August 16, has already become the longest suspension in the program's history, used nearly 200 times through end-July.

Key Details:

• The Jones Act requires cargo between U.S. ports to be carried on U.S.-built, U.S.-owned ships with American crews
• Administration officials are discussing narrowing the waiver's scope while maintaining flexibility for critical fuel supplies
• No final decision has been made; details remain subject to change
• Discussions involve White House trade adviser Peter Navarro, OMB Director Russell Vought, and the White House Energy Dominance Council

Market Context:

Trump has escalated attacks on Exxon Mobil and Chevron, accusing them of making "too much money" and demanding they return profits to consumers. However, analysts suggest limited options remain for meaningfully reducing prices. Rapidan Energy Group President Bob McNally estimates the Jones Act waiver would likely reduce gasoline prices by only pennies per gallon.

Opposition:

Republican lawmakers including House Speaker Mike Johnson and Majority Leader Steve Scalise are pushing for limitations, warning broad waivers could weaken the domestic fleet and undermine national security goals. Maritime groups, including the American Maritime Partnership, have launched advertising campaigns arguing the waiver benefits foreign operators, including entities linked to China and Russia, while undermining U.S. maritime infrastructure.

The extension faces political tension between consumer price relief and protecting domestic maritime interests.