Carnival Corporation's stock plummeted 5.01% during Friday's pre-market session, following reports that the Trump administration plans to impose taxes on foreign-flagged vessels calling at U.S. ports.

The cruise line industry, including major players like Carnival, Royal Caribbean, and Norwegian Cruise Line, has long operated with flags from countries like Liberia and Panama to avoid paying taxes in the United States. However, the new U.S. Commerce Secretary Howard Lutnick announced the administration's intention to end this practice.

"Have you ever seen a cruise ship with an American flag? They have flags of Liberia or Panama. None of them pay taxes," Lutnick said in an interview with Fox News. "This is going to end under Donald Trump, and those taxes are going to be paid." While the move faces significant hurdles and skepticism from analysts, it has sparked concerns in the cruise industry, leading to a sell-off in related stocks.