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Cruise stocks tumble after Commerce Secretary Lutnick signals tax crackdown

1. Commerce Secretary warns of cruise line tax crackdown; comments may trigger regulatory changes. 2. Lutnick criticizes tax avoidance; questions American flag usage on cruise ships. 3. Carnival shares fell 9% amid looming tax enforcement threats. 4. Royal Caribbean shares plunged 11% following remarks on taxation.

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FAQ

Why Bearish?

Lutnick's statements triggered a sharp sell-off, echoing past regulatory threats that have historically depressed cruise stocks, including Carnival.

How important is it?

Directly referencing Carnival with a 9% drop, the article signals a significant near-term risk, underpinned by potential regulatory shifts affecting the cruise industry.

Why Short Term?

The immediate market reaction and volatility suggest short-term pressure; effects may dissipate once policy clarity is achieved.

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