Featured Image Credit: Bloomberg via Getty Images
Topics: Donald Trump, Royal Caribbean, China, Cruise Ship, Carnival Cruise Line
Michael Slavin
Topics: Donald Trump, Royal Caribbean, China, Cruise Ship, Carnival Cruise Line
The CEO of Royal Caribbean has revealed how Donald Trump’s ongoing tariff war will impact the cruise ship industry.
China and the United States of America have continued to raise tariffs on one another and Donald Trump announced a ‘Liberation Day’ in which tariffs were levied against countries across the world, many of which he has since actually paused.
These tariffs, which make importing goods from certain countries more expensive, have effected a number of different industries, but many will be wondering what impact they will have on cruises.
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The cruise ship industry sits in a unique place where voyages can cover a number of countries and be crewed by people from all over the world, but many of the biggest companies are based in the United States or the United Kingdom, both of which have been affected by the tariffs.
Speaking recently at a Seatrade Cruise Global conference, the CEO of Royal Caribbean, Jason Liberty, was on a panel with other CEOs titled ‘State of the Global Cruise Industry’.
When asked whether cruises would be affected by tariffs many of the CEOs reportedly shook their heads.
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Another CEO, Josh Weinstein of Carnival, said: “The short answer is no, for various reasons.
"Because of how we could resource a lot locally and we also go to different places, we're not we're not landlocked, so to speak."
He went on to add: “The uncertainty and the ripple effects absolutely has an impact on the industry.
"The hard part about that is that as of now, the answer is we don't know.
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“So anytime there's an answer, we don't know, it just takes some time for people to get comfortable with the uncertainty."
Liberty, the CEO of Royal Caribbean, added: “Current economic noise will not prevent our collective ambitions to grow this industry."
He went on to state that ships were being ordered further and further out, a sign of growth.
He added: “Because we are also looking further out, some of these ships are getting to 35 to 40 years in age, some of these (new ships) will be net replacement.”
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Anyone planning a cruise will be hoping that the CEOs stick to their word and this does not lead to an increase in prices for upcoming cruises.
Earlier today China raised tariffs on the United States up to 125 percent, and has announced it will stop importing as many Hollywood films, a move that many within the film industry have called ‘catastrophic’.
A strong statement by the Chinese government confirmed that it would not be negotiating with Trump, saying: “We must solemnly tell the US that a tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China.”