Cruise and Shipping Stocks Rebound as Trump Reverses Course on Tariffs

 

After the abrupt suspension of the Trump administration's "reciprocal" tariffs, markets in the U.S. and Asia soared upwards, regaining much of the losses posted over the past week. Only China remains subject to the White House's steep nation-by-nation tariff schedule, and its exporters now face a crippling levy of 125 percent. Most trade with other nations - including favored new locations for Chinese manufacturers, like Vietnam - will only be subject to a 10 percent levy.

Investors responded positively as soon as the White House announced the 90-day delay. The Dow shot up eight percent; the S&P 500 rebounded nearly 10 percent; and the Nasdaq soared upwards 12 percent.   

In Asia, the Nikkei jumped up eight percent and Singapore's STI benchmark rose by five percent in early trading Thursday morning. Even the Shanghai Stock Exchange and the Hang Seng index ticked upwards, despite the extreme U.S. tariff rates facing Chinese manufacturers. 

Buoyed by positive predictions for economic growth in the U.S., cruise stocks were some of the biggest winners. Carnival Cruise Line's stock - a benchmark for the travel and leisure industry - soared by more than 17 percent. Royal Caribbean jumped by 16 percent, and Norwegian Cruise Line went up by 18 percent. In one day of trading, all three regained almost all of the losses they had sustained since April 2, the day that the White House first announced the new tariff regime. 

A parallel rebound in oil prices triggered some signs of share price recovery in the offshore segment. The rig leader Transocean rose by 10 percent, offsetting the massive 35 percent drop it suffered last week. OSV giant Tidewater also began to recover, posting a 10 percent jump. Tanker stocks have also done well, if not yet enough to reverse earlier declines: CMB.Tech rose six percent; Teekay rose five percent; and Scorpio rose by three percent. 

In the liner segment, almost all players saw substantial single-digit gains, led by Yang Ming (up nearly 10 percent). Chinese operators face a more challenging picture, given continued tariffs and the threat of new port fees on Chinese vessels. COSCO Shipping Holdings, the publicly-listed component of state-owned giant China COSCO, edged down by one percent early Thursday.

The trade landscape could still change rapidly. The reciprocal-tariff suspension will last for 90 days, according to the White House, and will give time for nations to negotiate with the Trump administration in talks led by Treasury Secretary Scott Bessent.