Defending American Property Abroad Act of 2025
The Defending American Property Abroad Act of 2025 would give the United States a new tool to respond to foreign governments that nationalize, expropriate, or otherwise discriminate against assets owned by U.S. persons. The bill directs the Secretary of Homeland Security (with Treasury and State Department input) to identify and designate “prohibited property” at ports and related infrastructure in Western Hemisphere partner countries that have free trade agreements with the U.S. If designated, a broad set of activities involving those properties—such as loading/unloading goods, docking passenger vessels, and maintenance—would be prohibited for any vessel or goods connected to the United States. Additionally, the bill expands the triggers for “unreasonable or discriminatory” acts under the Trade Act of 1974 to include direct or indirect expropriation, arbitrary or discriminatory treatment, denial of due process, and nationality-based discrimination against U.S. assets. In short, the bill creates a sanctions-like framework aimed at pressuring foreign governments to refrain from expropriating or unfairly disadvantaging U.S. property, by restricting U.S. use of affected port facilities and expanding the legal basis for such actions under the Trade Act.
Key Points
- 1Designation of Prohibited Property
- 2- Within 60 days of enactment, DHS (with concurrence from Treasury and State) must identify and designate all prohibited property at ports, harbors, or marine terminals in covered foreign trade partner countries, and publish the list in the Federal Register.
- 3- A “covered foreign trade partner” is a Western Hemisphere country that has a free trade agreement with the United States.
- 4What counts as prohibited property
- 5- Includes port infrastructure and relevant facilities needed to load/unload vessels and store goods (conveyors, roads, docks, moorings, silos, offices, etc.).
- 6- Prohibited property is located in the territory of a covered partner and is accessible only via land owned or controlled by a U.S. person, where the government has expropriated land or repudiated related contracts after January 1, 2024, or otherwise seized ownership or control.
- 7Prohibitions on use of prohibited property
- 8- The President must prohibit vessels loaded at designated property from entering or passing through U.S. ports, and from importing or releasing goods into the United States.
- 9- Prohibits docking passenger vessels in the United States, releasing passengers, and performing maintenance or servicing on the prohibited property.
- 10Expanded basis for trade violations under the Trade Act
- 11- The bill expands Section 301(d)(3)(B) of the Trade Act of 1974 to include new sub-criteria for actions against U.S. assets: expropriation/nationalization; arbitrary or capricious treatment; denial of due process; and nationality-based discrimination.
- 12Definitions and scope
- 13- Important terms include “passenger vessel” (large passenger ships), “prohibited property,” and “United States person” (U.S. citizens, permanent residents, or entities at least 50% U.S.-owned).
- 14- The framework focuses on Western Hemisphere countries with FTAs, affecting how certain foreign port assets may trigger U.S. responses.