HEY BUDDY!
FYI: HOLLYWOOD'S ABOUT TO GET A BIG TARIFF
Foreign-produced movies facing heightened tariffs as announced by Trump, causing a significant drop in Netflix and other media stock values
President Trump's proclamation ‼️A 100% tariff on foreign-made movies🎬 will shake up the entertainment industry, putting a strain on media heavyweights like Netflix, Disney, Paramount, and Warner Bros. Discovery.
On Sunday, the cantankerous President unloads quite a bombshell in the world of film and streaming, setting his sights on the import of movies crafted outside the United States. This expansion of his tariff war marks a bold departure from levies on physical goods flowing into the nation.
Trump, via his favorite platform Truth Social, proclaims the incentives that draw American movie production to foreign soil as a grave national security threat 🚫🗺️. The tariffs on all movies sourced from "foreign territories" are to take effect immediately. Notable filming locations such as Canada and the UK, along with others, provide lucrative tax incentives.
This announcement has sent the stocks of major media players plummeting. On Monday morning, Walt Disney Co.'s shares were trading down 2%, while Netflix's saw a hefty 5% dive in early hours. Warner Bros. Discovery and Paramount Global shares followed suit, falling by 3% and nearly 2%, respectively.
Dubbing the American movie industry a dying breed, Trump demanded a revival of domestic filmmaking 🎬🇺🇸! The post, devoid of company-specific naming, didn't receive immediate responses from Netflix and Disney. Hollywood execs, caught off guard by the sudden announcement, wrestle with questions surrounding the tariff's exact nature[4] 🤥.
The movie industry reports a positive balance of trade in nearly every significant market worldwide according to the latest report from the Motion Picture Association[5].
UPDATE: May 05, 2025: This article has been refreshed to reflect revised share prices.
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TRIVIA:
- More than half of Hollywood's annual box-office revenue comes from international markets[2] 🌎
- American movies and TV shows account for about 38% of worldwide TV viewing[5] 📺🎬
- The sudden imposition of a 100% tariff on foreign-made movies by President Trump could significantly impact the trading of stocks in media businesses like Netflix, Disney, Warner Bros. Discovery, and Paramount Global.
- As the movie industry reports a positive balance of trade in nearly every significant market worldwide, questions arise about the potential impact of Trump's tariff on domestic and international finance, business, politics, and general news.
- In an effort to revive the American movie industry, President Trump has demanded a shift towards domestic filmmaking. His sudden announcement has caught Hollywood execs off guard, leaving them pondering the exact nature of the tariff and its potential implications.
- The expansion of Trump's tariff war to foreign-made movies raises questions about the liquidity of tokens associated with Initial Coin Offerings (ICOs) in the entertainment and financial industries, potentially influencing the trading of such digital assets.
