The actions on the main transmission platforms of the USA. And the film studios fell sharply on Monday after the surprise announcement of President Trump that he plans to introduce 100% tariffs in the films produced abroad, reviving Conns on the disruptive scope of his commercial trade.
Netflix’s shares fell 1.7%, Amazon fell 1.5%, and both Warner Bros Discovery and Paramount Global fell more than 1%in the afternoon negotiation. The Nasdaq index, very weighted towards the actions of the media and technology, was out of 0.6% as investors weighs the implications of a rate that could drastically remodel the Hollywood economy.
The president’s social position said he had ordered the Department of Commerce and the commercial representative of the United States to implement the new tax, but did not provide details about how it would apply, including Wheter ither ither Targe Targe Streame Streame Bused Produced, Calcatical Release Revenue.
A significant portion of entertainment produced by the US. UU. It is filmed abroad to take advantage of tax exemptions, lower labor costs and specialized postproduction centers. Netflix, in particular, depends largely on an international production network to attend to its global subscriber base.
“The problem is that almost all studies are moving tons of production abroad to reduce production costs,” said Barton Crockett, a media analyst at Rosenblatt Securities. “Increasing the cost to produce films could lead to studies to make less content.”
Places of films such as the United Kingdom, Canada and Australia, favored by their incentives and qualified labor forces, now face to be a criminal in Trump’s proposition plan. A survey by Produpro found that the five best preferred production locations for 2025–26 among study executives were all superior to the United States.
Only this year’s Oscar -nominated films were largely abroad, which emphasizes how deeply integrated international production has become the Hollywood business model.
Film operators also touch a success, with Cinemark Down 2% and IMAX falling 3%, since investors feared a coup effect on content supply and box office income.
“It does not feel like something that will happen in the short term, since everyone will deal to understand the entire process,” said Paolo Pescatore, an analyst at PP Foresight. “Inevitably, costs will be transmitted to consumers.”
The United Kingdom media and production sector could be among the most affected. The Bectu Union, which represents tens of thousands of independent film and television workers based in the United Kingdom, urged the government to take quick measures to defend the screen sector of £ 6 billion of the country, warning that jobs and investment could carry the pressure.
“Tens of thousands of independent works are at stake,” Bectu said in a statement. “The United Kingdom is a vital part of the global films production chain and must be protected.”
Hollywood 2023 strikes have already increased the cost of doing business, ensuring better salaries and benefits for writers and actors. Trump’s proposed rates could now add another financial pressure layer, as studies try to recover from months of detained production.
Although the administration has not yet confirmed the scope of the calendar or precise of the film’s rates plan, analysts warn that even the threat of protectionist policy is sufficient to detect investment and interrupt the planning cycles of the study.
For a sector, Alreaty lidia with the transmission competition, the recovery of the cinema and the changing audience habits, Trump’s last political save can force difficult decisions, and a possible reduction in the creation of content completely.
Jamie Young
Jamie is a senior reporter of Business Matters, who brings more than a decade of experience in commercial reports of the United Kingdom. Jamie has a business administration title and participates regularly in conferences and industry workshops. When he does not inform about the last business development, Jamie is passionate about the mentoring of promising journalists and businessmen to inspire the next generation of business leaders.
