All major cruise lines that trade publicly in the United States saw shares fall significantly Friday after a threat by the Donald Trump administration to begin charging them federal income tax.
You ever see a cruise ship with an American flag on the back? They have flags of like Liberia or Panama. None of them pay taxes. This is going to end under Donald Trump and those taxes are going to be paid and Americans’ tax rates are going to come down,” he told Fox.
Related: Royal Caribbean crew captures cruise ship stowaways
The Cruise Line Industry Association disputes the idea that its members, which include Royal Caribbean Group, Carnival Corp., and Norwegian Cruise Line disputes that idea.
“Cruise lines pay substantial taxes and fees in the U.S. – to the tune of nearly $2.5 billion, which represents 65% of the total taxes cruise lines pay worldwide, even though only a very small percentage of operations occur in U.S. waters,” CLIA shared in a statement. “Foreign flagged ships that visit the U.S. are treated the same for taxation purposes as U.S. flagged ships visiting foreign ports, which provides consistent reciprocal treatment across international shipping.”
Doug Parker from Cruise News Today shared the full story.
Trump official threatens cruise industry
This is Cruise News Today with Doug Parker.
Good morning. Here’s your cruise news for Friday, February 21.
Cruise line stocks tumbled on Thursday after U.S. Commerce Secretary Howard Lutnick announced the administration’s plan to require cruise companies to start paying U.S. income taxes.
Now on the news, shares of Carnival, Royal Caribbean, and Norwegian Cruise Line Holdings all dropped between 7 and 11 percent. Lutnick said that the move would close tax loopholes used by cruise lines who typically register ships under foreign flags like in Liberia or Nassau.
Analysts called the stock sell-offs an overreaction, noting similar tax proposals have failed in the past.
If implemented, experts do warn that cruise lines could relocate their headquarters.
The last attempt at a tax reform for the cruise industry occurred in 2017, but was unsuccessful.
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Historic ship nears end; Mexico battles seaweed
And after nearly 30 years in Philadelphia, the historic SS United States has finally begun its journey. Now, the vessel, once a record-breaking transatlantic ship, is being relocated to Florida’s Gulf Coast, where it will become the world’s largest artificial reef. After preparations in Mobile, the ship will be sunk off of the Destin Fort Walton Beach area.
The tow operation is expected to take about two weeks to get to Mobile, and the ship is currently off the coast of the Carolinas.
And it’s that time of year again. Mexican Navy and authorities are ramping up efforts to combat seasonal seaweed buildup along Caribbean beaches.
With the 2025 season expected to begin in April, officials are deploying containment barriers, specialized vessels, and satellite monitoring to protect cruise and tourist areas like Cozumel and Costa Maya.
Passengers cruising to the Western Caribbean between April and October are advised to check real-time seaweed conditions before booking beach excursions.
And the photo of the week comes from Amy, Norwegian escape under a full moon here in Costa Maya.
Beautiful photo. You can send yours in [email protected]. All photos are subject to broadcast.
And cruise stocks were down on Thursday.
Carnival Corporation down 5.6%, 24.56. Royal Caribbean down 7.6%, 243.89. Norwegian down 5%, 25.68, and Viking down 3%, 49.83.
If you have a lead on a story, let us know. [email protected].
On my way to Vegas in just a bit to go run the rock and roll road race happening on Sunday right there in front of Park MGM.
I’m Doug Parker with Cruise News Today.
Have yourself a great weekend.
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Make a free appointment with Come Cruise With Me’s Travel Agent Partner, Postcard Travel, or email Amy Post at [email protected], or call or text her at 386-383-2472.
