Stock prices of Hollywood studios declined on Monday after President Trump announced his plan to impose 100% tariffs on foreign-made films because he deemed them a threat to national security. The stock prices of Netflix declined by more than 5% while Disney and Warner Bros. Discovery dropped 3% and Paramount slid 2% and Comcast dipped under 1% pre-market. Through his Truth Social account Trump accused Canada and the UK of stealing American filmmakers while stating that the U.S. film industry faces extinction.
The proposed tariff implementation lacks clear guidelines regarding its application to U.S. studio productions made outside the country (e.g., Wicked, Gladiator II), streaming media and finished productions. The 25% tariff imposed by Canada did not affect the industry much because digital delivery methods were used but a 100% tariff could create major disruptions to global production. The Chinese market restrictions combined with possible retaliatory tariffs from other countries endanger Hollywood’s ability to recover production costs through international box office revenue.
The film industry faces potential trade relationship deterioration because it depends on foreign incentives together with foreign crews. The Motion Picture Association maintained silence about the matter while showing that U.S. film exports reached $22.6 billion in 2023 which demonstrated the sector’s global leadership position that now faces danger.
