This bill creates a new rule about which ships can use American ports and waterways. Specifically, it targets ports in countries that have free trade agreements with the United States but are located in the Western Hemisphere (like Latin America and the Caribbean). If a foreign government seizes or takes control of a port that an American person or company owns, the President can ban ships that have used that seized port from entering any U.S. port or waterway. This ban stays in place until the foreign government either returns the property to its American owner, pays fair compensation for it, or resolves the dispute in a way the President accepts.

In practical terms, this is a tool to pressure foreign governments to respect American property rights. If, for example, a country nationalizes an American-owned shipping terminal, ships using that terminal would be blocked from U.S. ports as a consequence. The bill includes exceptions for emergencies—if a ship is in distress, it can still enter U.S. waters even if it's under this ban. The President has the power to decide which ports trigger this rule and when to lift the ban once disputes are resolved. This mainly affects shipping companies and international trade, as it could disrupt supply chains if foreign governments seize American-owned port facilities.