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Investing.com -- Shares of major cruise lines plunged Thursday after newly appointed Commerce Secretary Howard Lutnick indicated that the industry could soon face U.S. taxes.

At the time of writing, Carnival Corporation (LON:CCL) has fallen 6.8%, Royal Caribbean (NYSE:RCL) has dropped 8.9%, and Norwegian Cruise Line (NYSE:NCLH) Holdings is down 6.9%. Viking Holdings has also lost 3.8% following Lutnick’s comments in a Fox News interview.

He reportedly criticized cruise operators for registering their ships under foreign flags to avoid U.S. taxes. 

“You ever see a cruise ship with an American flag on the back?” Lutnick said in an appearance on Fox News late on Wednesday. He added that “none of them pay taxes.”

“This is going to end under Donald Trump, and those taxes are going to be paid.”

Lutnick argued that implementing these taxes would help offset lower tax rates for Americans. 

The prospect of new financial obligations weighed heavily on investor sentiment, adding to existing pressures on the industry.

Cruise lines were already grappling with rising oil prices, which have climbed 16% from 2024 lows, increasing operational costs.

Despite the sharp decline, cruise stocks have surged in recent years, driven by booming post-pandemic travel demand. However, the threat of new taxation could challenge the industry’s recovery, leaving investors cautious about future profitability.

This content was originally published on http://Investing.com