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Following President Trump’s tariff announcement yesterday (April 3) and the market downturn, cruise stocks have dropped across the board. Cruise Industry News reports today that the major cruise line traded “considerably down at market close compared to other major companies and the S&P 500 index.”

U.S. Tariffs Send Cruise Stocks Plummeting

“While the S&P 500 average ended the day at almost 5 percent down, that was far better than the three cruise lines below on the stock exchange as Wall Street worries about consumer spending on discretionary items was front and center.” Royal Caribbean, Carnival and Norwegian Cruise Line Holdings stock prices all dropped between eleven and seventeen percent.

Cruise Stocks: Closing Prices April 3:

  • Carnival Corporation: $17.28, down 13.69 percent;
  • Royal Caribbean Group: $188.33; down 11.17 percent; and
  • Norwegian Cruise Line Holdings: $16.31; down 16.36 percent.

It is clear that the tariffs will continue to affect discretionary spending, plus there’s the issue of tourists outside of the U.S. boycotting travel to U.S. ports.

I don’t pretend to be a financial analyst but these factors will undoubtedly cause cruise stock to continue to fall, as least in the short term. The S&P 500 average ended the day down five and one-half percent (5.50 %) after losing over 2,200 points. The three major cruise stocks continued to fall today but not as much as the Dow Jones.

Today’s Cruise Stocks Closing Prices:

  • Carnival Corporation: $16.50, down 4.46% percent;
  • Royal Caribbean Group: $177.93, down 5.86 percent; and
  • Norwegian Cruise Line Holdings: $15.69, down 3.74% percent.

As the conservative Wall Street Journal reported, “after the tariff announcement was made, Wall Street was plunged into a two-day rout that erased $6.6 trillion in stock-market value.

Readers of our Face Book page left us the following comments regarding these issues:

  • No doubt the tariffs will definitely affect discretionary spending, plus there’s the issue of tourists outside of the U.S. boycotting travel to U.S. ports.
  • Planes are full going to Europe. Not so much on return.
  • The tourist market out of Australia has seen Japan and Korea become top tourist destinations. The US lost its lustre a long time ago.
  • The sentiment towards traveling from Europe to the US is quite negative. Not yet a “ban” but people are discussing those matters a lot.

The president says that he is committed to imposing these tariffs, so it appears that consumer prices will continue to rise and discretionary spending will tighten. Canadians and Europeans may continue to be hesitant to travel to the U.S. and travel on cruise ships based here. Read: “I feel utter anger”: From Canada to Europe, a movement to boycott US goods is spreading.

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Image credit: PortMiami – PortMiami