Cruise Stocks Plummet Following U.S. Tax Crackdown Announcement

Commerce Secretary Howard Lutnick signals an end to tax exemptions for cruise operators using foreign flags, causing sharp market reactions.

Shares of major cruise lines, including Royal Caribbean, Carnival, and Norwegian Cruise Line, fell sharply, with losses ranging from 8% to 11%.
Commerce Secretary Howard Lutnick announced plans to require cruise companies to pay U.S. taxes, ending their long-standing practice of registering under foreign flags.
Lutnick stated that the tax crackdown would occur under the Trump administration and suggested it could lead to lower tax rates for Americans.
The announcement comes as the cruise industry has been benefiting from strong post-pandemic demand, with record bookings and higher per-passenger revenues.
Other challenges for the industry include rising oil prices and declining bookings in regions like California and Canada due to wildfires and currency strength.