- On Sunday, President Donald Trump suggested a 100 % tariff for films Outside the United States, the move made investors from the main American signs and studios, and shares for companies such as Netflix and Paramount Slid. Analysts warn that the tariff, although it is not completed, will lead to fewer films and more expensive.
President Donald Trump also seeks to impose a 100 % tariff In films produced outside the United States, investors in film production studios are increasing.
Main studios prices and broadcasting companies declined after the news, with Netflix The shares are trading 1.5 % in the middle of the day on Monday, and Paramount contributes about 0.7 %. Disney and worldwide Parent Pom It fell in the pre -market trade on Monday, before mostly returning to the prices of each of them closing on Friday.
Trump said on Sunday Social media yet He plans to implement taxes on foreign films as a way to prevent American films from “death on a very fast death.”
He said: “Other countries offer all types of incentives to attract filmmakers and our studios away from the United States.” “Hollywood, and many other regions within the United States of America. This is a concerted effort by other countries, thus threatening national security.”
White House spokesman Kush Desai said in a statement to luck There were no final decisions on foreign film tariffs.
“The administration explores all options to provide President Trump’s guidance to protect national and economic security in our country, while making Hollywood great again,” Disai said.
American studios are increasingly turned into Fire projects abroad As a way to take advantage of tax features or find unique films for TV devices. Netflix announced in February plans for Invest one billion dollars To produce films and series in Mexico over the next four years.
According to a report From the entertainment industry consultations, Olsberg SPI, 36 European countries and 15 Asian countries, provided film production incentives in 2024, an increase of 17 European countries and 7 Asian countries providing tax credits and discounts in 2017.
Analysts warn of the consequences of tariff
While Trump suggested that foreign films tariff provide a boost for US films and studios, analysts warn that the move may have the opposite intended effect, which increases production costs that would make studios make difficult decisions.
“100 % tariffs for some or all the cost of the movie … it will lead to a fewer number Morgan StanleyHe wrote in the Monday note for investors. “The truth is that for any specific movie, there can be writing, production, editing, post-production, visual effects-which is done in different countries.”
In 2023, American films brought $ 22.6 billion in exports and contributed to a 15.3 billion dollar trade surplus, according to Data From the Animated Photo Association.
Information about what the proposed Trump tax can include is compared, which leads to raising questions about any projects-such as the programs that have been completed or recently completed-are affected, and if the tariff step means a path to filming TV abroad as well.
Most of them are related to it are the potential risks of countries that impose a retaliatory tariff on American projects, or are likely to prevent US publications.
“Will foreign governments respond by preventing the export of American content, through the play, broadcast or both?” Swinburn said in his note. “This may be the biggest danger, which increases the possibility of taxes on broadcasting services at higher rates or even reduce the extent of Hollywood content.”
This story was originally shown on Fortune.com
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