Travel stocks buoyed by EU tariff pause
May 27, 2025 5:08 PM ET
By: Amy Thielen, SA News Editor
Travel booking and cruise stocks rose Tuesday following President Trump's decision to delay tariffs on the European Union, fueling optimism about improved travel demand from Europe amid ongoing trade negotiations.
On Saturday, Trump said he would delay a 50% tariff on EU imports until July 9 to allow trade negotiations between the U.S. and Europe to continue.
In a post on Truth Social, the decision was attributed to a call from European Commission President Ursula von der Leyen, who requested an extension and assured President Trump that "talks will begin rapidly."
“Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9,” von der Leyen posted on X.
The development reverberated through U.S. and European financial markets, fueling substantial gains in Wall Street’s major averages as well as sectors with ties to European commerce.
As Western Europeans are the second-largest source of cruise passengers, shares of Carnival Corporation (NYSE: CCL), Royal Caribbean ( RCL), Norwegian Cruise Lines ( NCLH), and Viking Holdings ( VIK) closed with gains of as much as 6%.
Among travel booking platforms, Tripadvisor ( TRIP) outperformed with a gain of 4.7%, followed by Expedia Group ( EXPE), Booking Holdings ( BKNG), and Airbnb ( ABNB).
Gains across the airline sector were led by JetBlue ( JBLU) which recently expanded its service from Boston with flights to Madrid, Spain, and Edinburgh, Scotland. Shares closed nearly 10% higher. |
