Trump’s Jones Act move won’t cut gas prices
President Donald Trump may suspend the Jones Act again as gasoline prices stay above $4 a gallon. Such a decision could hurt Republicans in the upcoming midterm elections. The waiver would permit foreign-flagged ships to carry domestic oil and fuel, renewing an exemption granted in March when crude prices rose due to Middle East tensions.
The earlier waiver failed to reduce pump prices. Shipping costs represent a minor part of gasoline expenses, leaving Trump with few tools to lower costs through maritime rules alone. He has since increased pressure on ExxonMobil and Chevron, accusing the companies of unfair pricing despite a drop in global crude prices.
Big Oil profits soar as pressure mounts
Trump’s criticism follows record earnings from the industry. Chevron’s profits reached $12 billion, up from $2.5 billion the prior year, while ExxonMobil’s more than doubled to $14.5 billion. The White House ordered the Department of Justice to examine possible price gouging, though the firms have not signaled any policy changes.
Related: EU Aims to Triple Energy Storage by 2030
With few alternatives, renewing the Jones Act waiver remains one of Trump’s remaining options. The initial 60-day exemption, announced in March, ends on August 16. It temporarily removes requirements that domestic cargo travel only on American-built, -owned, and -crewed vessels.
The 1920 law aimed to secure U.S.-flagged ships for defense and protect maritime jobs. It has been waived 40 times, including in 2021 after the Colonial Pipeline ransomware attack disrupted fuel deliveries.
Waiver’s limited impact on gas prices
The March waiver did little to lower costs.
Related: Middle East War Threatens LNG Growth Prospects
Opponents argue the waiver harms American shipbuilding and seafaring jobs. In June, House Speaker Mike Johnson and over 50 Republican lawmakers asked Trump to end the exemption. Trump faces competing pressures. Energy and agricultural groups support the waiver for easing supply issues, while maritime unions and coastal lawmakers oppose it. Some critics, including former New York City Mayor Michael Bloomberg, call the Jones Act an outdated rule that raises costs for families in places like Hawaii by about $1,800 annually.
For most Americans, the debate centers on pump prices rather than policy details. A late-July poll showed 46% of voters say gas prices will affect their midterm choices. This concern may influence Trump’s decision more than the waiver’s actual economic effects.
Even if extended, the waiver will likely have little impact on prices. The challenge remains finding another way to address voter frustration before November.
