Cruise Stocks Decline Following Commerce Secretary’s Comments on US Taxes
Shares of major cruise lines, including Royal Caribbean (RCL), Carnival (CCL), Norwegian Cruise Line (NCLH), and Viking (VIK), dropped on Thursday after newly confirmed Commerce Secretary Howard Lutnick suggested the Trump administration would impose US taxes on cruise operators.
- Lutnick’s comments came during an interview on Fox News, where he targeted cruise companies for not paying US taxes.
- He questioned, “Have you ever seen a cruise ship with an American flag on the back?,” emphasizing that this would change under Donald Trump‘s administration.
Remarks on Tax Policy and International Revenue
Lutnick also shared President Donald Trump‘s broader tax policy plan, which includes aiming to abolish the IRS and raise revenue through charges against other nations.
- These statements align with previous administration proposals about creating an External Revenue Service to manage tariffs and foreign income.
Stock Market Response
The market reacted swiftly to Lutnick’s remarks, with the stocks of the affected companies seeing a significant drop.
- Royal Caribbean saw a decline of 9.4%.
- Carnival Corp. dropped by 6.9%.
- Norwegian Cruise Line and Viking also fell by 7.3% and 4.2%, respectively.
In recent trading, the price of Royal Caribbean was $239.87, reflecting a -9.14% change.
