This bill prohibits U.S. ports from servicing vessels that have docked at foreign ports where the U.S. government has determined property essential to accessing that port was unjustly seized from an American entity.
Bill Hagerty
Senator
TN
The Defending American Property Abroad Act of 2025 establishes penalties against foreign governments that nationalize or expropriate U.S.-owned port infrastructure in trade partner nations. It mandates the identification of such "prohibited property" seized by foreign governments after January 1, 2024. Once identified, vessels that use these prohibited ports will face strict bans on docking, unloading, or receiving services in the United States. Furthermore, the Act expands the definition of unfair trade practices to include the arbitrary seizure or discriminatory treatment of U.S. assets abroad.
Proposed Act Bans Ships Using Foreign Ports Seized from U.S. Investors, Raising Supply Chain Concerns
The “Defending American Property Abroad Act of 2025” is a serious piece of legislation aimed at protecting U.S. investments in ports and shipping infrastructure across the Western Hemisphere. Think of it as a policy that says, “If you seize our stuff, your ships can’t dock here.” This bill establishes a direct, powerful mechanism for economic retaliation against countries that nationalize or expropriate property owned by U.S. persons.
The "Prohibited Property" Trap
Here’s the core mechanism: If a foreign government in a country with a U.S. free trade agreement seizes land owned or controlled by a U.S. person—a citizen, permanent resident, or a company at least 50% U.S. owned—and that land is needed to access a port, that port facility becomes “prohibited property” (SEC. 2). The Secretary of Homeland Security has 60 days after the bill becomes law to start identifying and publicly listing these facilities. Once a port is designated, the hammer drops.
Banned from the Dock: What Happens Next
If a vessel—and this includes large passenger vessels—docks or loads cargo at one of these newly designated “prohibited properties,” that ship is immediately barred from the United States. The President must ban that ship from doing four critical things in the U.S.: bringing goods in, letting passengers off, docking anywhere, or receiving any servicing, repairs, or refueling (SEC. 2). This is a total, immediate ban. If you’re running a cruise line or a major freight carrier that calls on ports in the Western Hemisphere, you’ll need to track this list closely. One wrong stop could ground your vessel in the U.S. indefinitely.
Protection for Investors, Cost for Consumers
On one hand, this bill is a huge win for U.S. investors and companies who build or operate infrastructure abroad. It gives them a powerful deterrent against arbitrary government seizures, explicitly expanding existing trade law (SEC. 3) to classify property expropriation and nationality-based discrimination as unfair trade practices that the U.S. can aggressively challenge. This offers real protection against a foreign government suddenly deciding to take over your company’s assets just because you’re American.
However, the mechanism for protection is severe and could have real-world consequences for everyone else. Banning ships that have called on a prohibited port is a massive disruption to global shipping. If a major port in the Caribbean or Central America is designated, every cargo ship or container that touched that port becomes toxic to U.S. commerce. This could easily translate into higher shipping costs, delays, and potentially fewer choices for goods on store shelves—a direct hit to the wallets of everyday consumers and small business owners who rely on predictable supply chains. Furthermore, if you’re planning a cruise, you’ll want to make sure your vessel hasn’t recently called on a newly designated port, as it could impact your ability to disembark in the U.S.