On Monday, investors in leading Hollywood studios and streaming platforms expressed concern over President Donald Trump’s recent suggestion of imposing a 100% tariff on films produced overseas.
Pre-market share prices for major companies such as Netflix, Disney, Paramount, and Warner Bros. Discovery declined, with Comcast-owned Universal also experiencing a minor drop. The share price adjustments are as follows:
- Netflix down over 5%
- Disney down more than 3%
- WBD down more than 3%
- Paramount down over 2%
- Comcast down less than 1%
In a post on Truth Social late Sunday, Trump labeled tax incentives given by foreign nations as a “national security threat,” stating he had directed the Department of Commerce to implement a tax on all films produced abroad that enter the United States.
The specifics of how these tariffs would be enforced remain unclear, as do the precise targets and the financial implications for those affected.
Hollywood has historically utilized international locations for filmmaking, often benefiting from tax incentives or scenic landscapes. Many productions take place in multiple countries, with numerous studios operating satellite facilities worldwide.
When Trump previously announced a 25% tariff on imports from Canada—a favored location for various Hollywood projects—industry experts indicated to Finance Newso that the impact on production would be minimal due to the predominance of digital shooting and the ease of transporting finished products online or via data storage devices. Unlike consumer goods such as toys or clothing, film production does not rely on the physical exchange of items to the same extent.
Discussions are evolving regarding the implications of this proposed duty. Key questions include which aspects of production would be affected, whether the tariff would extend to television series filmed internationally, and if completed works could be exempted from these charges.
Furthermore, similar to earlier tariff announcements this year, professionals in the industry express concerns about how these tariffs may influence international relations. Hollywood significantly relies on global box office revenues to recover substantial production costs, and with China already restricting access to Hollywood films, further retaliation from other countries could be a looming threat.
Disclosure: Comcast is the parent company of NBCUniversal and Finance Newso.
