This Act prohibits U.S. commerce and services for vessels associated with ports in Western Hemisphere trade partners that have illegally seized access-controlling land belonging to American entities since 2024.
August Pfluger
Representative
TX-11
The Defending American Property Abroad Act of 2025 targets foreign governments in the Western Hemisphere that have seized or unfairly controlled port infrastructure essential to U.S. trade access since early 2024. The bill requires the executive branch to identify this "prohibited property" and subsequently ban any associated vessels from accessing U.S. ports or receiving services. Furthermore, the Act expands the definition of unfair trade practices to explicitly include the nationalization or discriminatory treatment of U.S. assets by foreign nations.
New Bill Bans Ships from Foreign Ports That Seize U.S. Access Land, Threatening Supply Chains
The Defending American Property Abroad Act of 2025 is a heavy-hitting trade bill that gives the U.S. government a new tool to fight back when foreign countries in the Western Hemisphere seize assets from American businesses. Specifically, if a U.S. citizen or company controls the land access to a port, and a free-trade-partner government effectively seizes that land after January 1, 2024, the U.S. government can designate the entire port as “prohibited property” (SEC. 2).
The 'Prohibited Property' Hammer
This isn't just a slap on the wrist; it’s a full-on economic sanction. Once the Secretary of Homeland Security, Treasury, and State Department identify one of these ports—which must happen within 60 days of the law passing—the President is required to ban any vessel associated with that port from doing business in the U.S. (SEC. 2). This means if a ship loads cargo at a designated port, it can’t import goods into the U.S., it can’t dock a passenger vessel here, and it can’t even get basic services like refueling, repairs, or dry docking in any U.S. port. Imagine a container ship that stops at a newly designated port just to drop off a few boxes; that ship is now essentially blacklisted from U.S. waters until it can prove it’s clean.
What This Means for Your Wallet
The immediate goal is to protect U.S. corporate assets abroad. But the real-world impact for the rest of us hinges on where these designations land. If the U.S. government bans vessels from a major trade hub in the Western Hemisphere, it’s going to cause serious friction in the supply chain. Shipping companies and logistics firms will have to reroute, causing delays and increased costs for everything from imported produce to car parts. For the average person, this translates directly to higher prices at the grocery store and longer waits for consumer goods—a classic case of trade disruption leading to economic burden (SEC. 2).
Expanding the Definition of 'Unfair'
Beyond the vessel bans, the bill also quietly updates a key piece of U.S. trade law, the Trade Act of 1974. It expands the definition of what counts as an “unreasonable or discriminatory” trade practice. Now, if a foreign government seizes U.S. assets, treats them arbitrarily, denies due process, or discriminates based on nationality, it can trigger a formal unfair trade investigation (SEC. 3). This is significant because it gives the U.S. government more legal firepower to retaliate against foreign asset grabs using existing trade mechanisms. While this provides a clearer deterrent, the power to designate and enforce these sanctions is heavily concentrated in the Executive Branch, which could be concerning given the massive economic consequences of a single port ban.