Shares in major cruise companies have fallen sharply after Donald Trump’s Commerce Secretary Howard W. Lutnick indicated that the administration is considering the implementation of federal taxes on cruise ships, aiming to hold foreign-flagged vessels accountable for U.S. taxes.
During an interview on Fox News Live, Lutnick criticised the cruise industry for operating ships under flags like Liberia and Panama, suggesting this practice allows them to evade paying U.S. taxes, stating, “This is going to end under Donald Trump.”
Following Lutnick’s comments, shares of major cruise lines fell sharply, with Carnival Corporation down 6pc, Royal Caribbean Group 10pc, and Norwegian Cruise Line Holdings down 6pc.
The proposed tax policy aims to contribute to the Trump Administration’s goal of balancing the federal budget and reducing tax rates for Americans, which appears to have unsettled investors in the cruise industry.
