Ahead of Jones Act Waiver Expiration, Republican Leaders Say "No Extension"

Concerns Over Weakened U.S. Shipbuilding Investment and Shipping Competitiveness
White House Stresses Oil Price Stabilization
WP Editorial: "Effectively a Call to Raise Energy Costs"

The leadership of the U.S. Republican Party has publicly called for the scheduled termination of the temporary waiver of the "Jones Act," which the Donald Trump administration has implemented to stabilize oil prices, on August 16 as planned.

Republican Mike Johnson, Speaker of the U.S. House of Representatives, is entering the U.S. Capitol on the 30th of last month (local time). Photo by AP Yonhap News Agency

According to Bloomberg, on July 1 (local time), 52 Republican lawmakers, including House Speaker Mike Johnson and House Majority Leader Steve Scalise, sent a letter to President Trump. In the letter, they claimed, "The current Jones Act waiver is being exploited as a loophole by hostile nations to undermine U.S. maritime dominance," and insisted, "For the sake of the U.S. shipping industry and national security, the waiver should end as scheduled."

The Jones Act, enacted in 1920, stipulates that any vessel transporting cargo between U.S. ports must be built in the U.S., fly the American flag, and be owned and crewed by Americans. In March, following the disruption of energy supply chains due to the Middle East conflict, the Trump administration temporarily suspended the Jones Act for 60 days, allowing foreign vessels to transport fuel, fertilizer, and crude oil domestically. In April, the waiver was extended for another 90 days. This 150-day waiver period is the longest in history.

Currently, the Republican leadership and the U.S. shipping industry argue that a prolonged waiver could weaken investment in the U.S. shipbuilding industry and reduce the competitiveness of American shipping. They also claim that, because the Jones Act is a core system directly tied to U.S. military logistics support, a lengthy exception could negatively impact national security.

On the other hand, the White House maintains that the Jones Act waiver has helped stabilize oil prices by speeding up fuel supply and lowering logistics costs. U.S. Secretary of Energy Chris Wright also stated at a hearing of the House Committee on Science, Space, and Technology on June 2, "The Jones Act waiver has been used very broadly," adding, "I understand that about 100 vessels have taken advantage of this waiver."

The Washington Post (WP) also pointed out in an editorial on the same day that the energy cost savings achieved by the Jones Act waiver were significant, stating, "(Ending the waiver) is essentially a call to raise energy prices." In fact, according to the libertarian think tank Cato Institute, as of June 25, foreign ships made 136 calls to U.S. ports based on the Jones Act waiver. In the 70 days since the waiver was implemented, the amount of gasoline and jet fuel transported from the Gulf of Mexico to the U.S. West Coast exceeded the total volume shipped during the entire period from 2020 to 2025.

The WP further countered, "Republican lawmakers argue that hostile countries are exploiting a loophole to weaken U.S. maritime dominance and advocate for the enforcement of the law, but such maritime dominance does not exist," and suggested, "In fact, more than a century of protectionism may have created the current situation." The publication also noted that the Jones Act waiver did not take jobs from American ships, and that claims that Chinese ships would dominate U.S. shipping are not based in fact.

Meanwhile, according to Bloomberg, the Trump administration has not yet decided whether to extend the Jones Act waiver. Secretary Wright stated last week that the issue is currently being discussed within the administration.

This content was produced with the assistance of AI translation services.