American media companies saw their stock prices fall after President Donald Trump said he will place a 100% tax on all movies made outside the United States. This decision has raised concerns in Hollywood and on Wall Street, as it could lead to higher costs for film studios and damage the global movie business.
Streaming giant Netflix was among the biggest losers, with its stock dropping nearly 5%. Other major entertainment companies like Disney, Warner Bros., and Comcast also saw their shares fall in early trading. Investors fear this new policy could affect how these companies plan their budgets and release their content.
President Trump claimed that foreign countries are offering better deals and benefits to attract U.S. movie makers. He said this is hurting America’s film industry and even called it a threat to national security. According to him, some nations are using movies as tools for spreading their own ideas and messages against the U.S.
It is still unclear whether this tax will affect only movies shown in theaters or also those on streaming platforms. Experts say that if the rule applies to all foreign-made content, it could reduce the number of movies released in the U.S. and increase production costs, especially for companies that film abroad to save money.
In 2023, American movie exports earned over $22 billion, showing how important international markets are to the U.S. film industry. If other countries respond with similar taxes or restrictions, it could create major challenges for Hollywood’s global operations
White House Clarifies No Final Decision on Foreign Movie Tariffs Amid Trump’s Announcement
The White House clarified on Monday that no final decision has been made about putting tariffs on movies made outside the United States. This comes a day after President Donald Trump announced a 100% tariff on foreign films, saying the American movie industry is dying quickly because other countries offer better incentives to filmmakers. The announcement has added to the growing criticism of the White House’s aggressive trade policies, which have led to widespread tariffs on countries around the world.
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