️ United States President Donald Trump has granted a 90-day extension to a shipping waiver that eases the movement of oil, fuel, and fertilizer around the US, the White House announced. The move is the latest effort to curb rising energy costs linked to the war with Iran.
️ The Jones Act, passed in 1920, requires goods transported between US ports to be carried on US-flagged vessels. While designed to protect the US shipping industry, it has long been criticized for slowing deliveries, including critical aid during crises.
️ In March, the White House suspended Jones Act requirements for 60 days amid broader efforts to counter steep oil prices and cargo disruptions due to the war. The act is often blamed for making gasoline more expensive. However, analysts and industry groups argue the waiver will do little to ease consumers' fuel bills.
️ The Center for American Progress estimated in March that waiving the Jones Act would decrease East Coast gas prices by a modest 3 cents but potentially raise costs on the Gulf Coast. The think tank added that the move “would also sideline American shipbuilders and workers and allow the oil industry to continue to profit from high prices while reducing transport costs.”
️ White House spokeswoman Taylor Rogers confirmed the extension on Friday, stating, “This waiver extension provides both certainty and stability for the US and global economies.” A White House official said the administration acted three weeks before expiration to allow the maritime industry time to ensure sufficient vessels are available.
️ The Jones Act has long been a flashpoint between economic and national security priorities. Supporters, including US shipbuilders and maritime unions, argue it is critical for maintaining a domestic shipping industry and merchant marine for military logistics. Critics, including energy producers and agricultural groups, say the requirement sharply raises shipping costs and limits capacity, driving up fuel and goods prices.
️ “This extension of an already historically long and ineffective Jones Act waiver is not only an affront to hundreds of thousands of hardworking Americans who put this country first every single day, it sabotages President Trump’s agenda to restore American maritime dominance,” said Jennifer Carpenter, president of the American Maritime Partnership.
️ Recent polling suggests Trump and Republicans are losing ground on the economy, once a core political strength. Approval of his economic handling has fallen sharply, with rising gasoline prices weighing heavily on public sentiment. A Reuters/IPSOS poll found 77% of registered voters believe Trump bears at least a fair amount of responsibility for the recent gas price hike, prompted by his decision to launch a war with Israel on Iran. This view was shared across the political spectrum: 55% of Republicans, 82% of independents, and 95% of Democrats blame the president.
️ Trump has claimed crude and gasoline prices are likely to fall once the Iran conflict subsides, but analysts caution costs could remain elevated even after hostilities end due to supply disruptions, higher shipping costs, and lingering geopolitical risk premiums.
Source: www.aljazeera.com