05.05.2025 19:50
The decision by U.S. President Donald Trump to impose a 100% tax on foreign films negatively affected Hollywood stocks. American production companies lost nearly 2% in value.
After U.S. President Donald Trump announced a plan to impose a 100% customs duty on all films produced in foreign countries and coming into the country, shares of U.S. media companies fell.
SHARES EXPERIENCED A SHARP DECLINE
Trump's tariff move targeting the film industry negatively affected the shares of Hollywood companies.
Shares of U.S. production company Netflix, which has a global production network creating content for a global audience, lost nearly 2% in value as of 19:00 Turkey time. Shares of the streaming platform Paramount fell by over 1%, while Warner Bros Discovery's shares also declined by 0.5%.
DESCRIBED AS A NATIONAL THREAT
Additionally, shares of cinema operator Cinemark fell by over 2%, and shares of the Canada-based production company IMAX also dropped by more than 2%. Trump had described the incentives offered by other countries' film industries as a national security threat.
100% TAX ON FOREIGN FILMS
In a statement made yesterday on his Truth Social social media account, President Trump noted that the film industry in America is "dying" very quickly. He pointed out that other countries are offering all kinds of incentives to drive filmmakers and studios away from the U.S., stating, "Hollywood and many areas within the U.S. are practically being devastated." Trump emphasized that this is a deliberate effort by other countries and therefore poses a national security threat, adding that this is also a message and propaganda.
President Trump stated, "Therefore, I am authorizing the Department of Commerce and the U.S. Trade Representative to immediately initiate the process of imposing a 100% customs duty on all films produced in foreign countries and coming into our country. We want films to be made again in America." While it remains uncertain how Trump will implement these taxes, it is noted that this situation could increase production budgets and disrupt the global production supply chain.