The Defending American Property Abroad Act of 2025 creates a new framework to counter foreign actions that nationalize, expropriate, or otherwise seize U.S. assets overseas. It targets port infrastructure located in Western Hemisphere countries that have formal free-trade agreements with the United States, and requires a government designation process to identify prohibited property.
The bill also expands the scope of the Trade Act of 1974 to treat certain foreign government actions against U.S. assets as “unreasonable or discriminatory.”
Within 60 days of enactment, the Secretary of Homeland Security (in consultation with the Treasury and State) must identify and publish a list of prohibited property, share it with Congress and relevant agencies, and publish it in the Federal Register. The President is then barred from allowing prohibited property to be used for import, export, docking, passenger handling, or servicing activities that involve U.S. persons or goods.
Separately, the bill adds new grounds to the Trade Act’s Section 301 to cover direct or indirect expropriation, arbitrary or discriminatory treatment, denial of due process, and nationality-based discrimination as forms of “unreasonable or discriminatory” treatment against U.S. assets.
At a Glance
What It Does
Identifies and designates prohibited port-related property in Western Hemisphere FTAs partners and bars its use for U.S. trade and travel activities. It also expands Section 301 to cover expropriation and related discriminatory acts against U.S. assets.
Who It Affects
Port authorities, shipping lines, exporters, and U.S.-owned or controlled property in covered partner countries; DHS, Treasury, State, and congressional committees coordinate enforcement.
Why It Matters
Creates a formal deterrent and enforcement mechanism to safeguard U.S. assets abroad and strengthen compliance with U.S. trade policy across eligible Western Hemisphere partners.
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What This Bill Actually Does
The bill formalizes U.S. protections against foreign actions that expropriate or seize American property abroad. It designates a class of assets—port infrastructure in Western Hemisphere countries that have a U.S. free-trade agreement as prohibited property—and requires a rapid designation process.
Once designated, these properties become off-limits to typical port-and-vessel activities involving U.S. goods or passengers. In parallel, the bill broadens the Trade Act of 1974 by adding new forms of “unreasonable or discriminatory” treatment tied to the assets of U.S. persons, including expropriation, denial of due process, and nationality-based discrimination.
The designation process is centralized: within 60 days, DHS, with Treasury and State, must identify prohibited property, circulate the list to the relevant agencies and Congress, and publish it in the Federal Register. The prohibitions on the use of prohibited property cover imports, releases, docking, passenger movement, and maintenance work on vessels that rely on the designated port assets.
The overall effect is to create a clear, government-backed framework to deter or respond to state actions that undermine U.S. ownership or control of critical port infrastructure. In the expansion of Section 301, the bill adds a new subsection that makes expropriation and related acts actionable under the “unreasonable or discriminatory” standard.
This aligns the trade remedy with recent concerns about how foreign governments treat U.S.-owned assets, ensuring the United States can respond when such actions undermine equal treatment or due process.
The Five Things You Need to Know
The bill defines and designates 'prohibited property'—Western Hemisphere port infrastructure owned or controlled by a U.S. person that has been nationalized, expropriated, or otherwise seized since January 1, 2024.
Designation of prohibited property must occur within 60 days of enactment, with DHS leading the process in consultation with Treasury and State and reporting to Congress and the Federal Register.
Prohibited property cannot be used for importing into the United States, docking or servicing vessels, or releasing goods or passengers to the U.S.
The Trade Act of 1974 is amended to treat expropriation, arbitrary or discriminatory treatment, denial of due process, and nationality-based discrimination against U.S. assets as forms of 'unreasonable or discriminatory' actions.
A broad definition of United States person ensures both individuals and U.S.-owned entities can be affected by the new trade remedies.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title
The act is officially cited as the Defending American Property Abroad Act of 2025. This section establishes the formal name and scope to anchor the policy provisions that follow.
Identification and prohibitions on prohibited property
This section defines key terms (including appropriate committees, covered foreign trade partner, passenger vessel, and prohibited property) and lays out the designation process for prohibited property. It also specifies the enforcement regime, including which port assets count, where they are located, and under what conditions they become prohibited, with implementation responsibilities assigned to DHS, Treasury, and State.
Expansion of acts under Title III of the Trade Act of 1974
This section amends Section 301(d)(3)(B) to add new triggers for government actions against U.S. assets, including expropriation and nationality-based discrimination. It clarifies the kinds of actions that would be considered ‘unreasonable or discriminatory’ and thus subject to U.S. trade remedies, aligning the trade framework with current concerns about foreign takings of American property.
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Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- U.S. owners and operators of port-related assets in Western Hemisphere FTAs who gain explicit protection against expropriation or nationalization.
- U.S.-based exporters and logistics firms that rely on port infrastructure and want a clear enforcement pathway if assets are compromised.
- U.S. government agencies (DHS, Treasury, State) that gain a formal mechanism to identify, monitor, and respond to expropriation risks.
Who Bears the Cost
- Foreign governments whose port assets are designated may face export restrictions or reputational costs as a consequence of U.S. actions.
- Port authorities and local contractors in affected partner countries could experience disruptions or changes to port access and operations.
- U.S. importers, exporters, and logistics providers may incur compliance costs and potential supply-chain adjustments to avoid designated properties.
Key Issues
The Core Tension
The central dilemma is balancing a robust defense of U.S. property abroad with the risk that aggressive designation or enforcement could escalate diplomatic tensions, disrupt legitimate cross-border commerce, or produce unintended consequences for allied port operations.
The bill creates a strong deterrent against foreign expropriation of U.S. property by designating prohibited port infrastructure and tying those assets to concrete restrictions on their use. However, the rapid 60-day designation process and the broad scope of prohibited property raise questions about potential misidentification, the risk of collateral damage to legitimate trade and diplomacy, and the administrative burden on several federal agencies.
There is also tension between protecting national assets and maintaining stable international relations with Western Hemisphere partners who host critical trade routes. Implementation will require careful coordination across DHS, Treasury, and State, and ongoing scrutiny of how “unreasonable or discriminatory” actions are interpreted in practice.
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