Hollywood studios are declining after Trump’s pledge to target the foreign movie
The best Hollywood studios and broadcasting services witnessed shares declining on Monday morning after President Trump pledged to implement a 100 percent tariff for films that were produced abroad.
In the early morning trading, Netflix decreased to about 4 percent, Disney fell by more than 2 percent, and Discovery Warner Bros. decreased. More than 3 percent. Paramount has decreased by more than 2 percent, and Comcast, which owns universal, decreased about 1 percent, CNBC said.
This decrease came when the reaction of senior executives in Hollywood to Trump’s announcement about placing a customs tariff on foreign films.
“The film industry in America is dying with a very fast death. 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, are destroying,” Trump said on the Internet on Sunday.
He said it was a “concerted effort” from other countries, and thus represents a threat to national security, describing it as messages and advertising.
“Therefore, I allow the Ministry of Trade and the representative of the United States to start immediately in the process of creating a 100 % tariff on any and all films coming to our country being produced in foreign lands. We want movies in America, again!” He said.
It is not clear how Trump’s tariff will be implemented on intellectual property. It is possible that it will face legal challenges from various members of the industry, including freedom of expression.
It is also not clear who will be targeted exactly under the Hollywood tariff in Trump and who will pay if the definitions are carried out.
Many studios contain production centers around the world, as many have filmed films abroad for years. Production companies may choose to photograph internationally for various reasons, including tax advantages or photography in a careful location without the need for a group.
On Monday, Alisia Reese of investors said to investors on Monday that large studios, distributors and independent studios “carry a great deal of risks as they will have to pressure the Trump administration to develop a reasonable standard for films that require live groups in external places.”
I estimated that 75 percent of Netflix content is produced outside the United States and foreign films and TV shows that make a large part of the broadcast service content. Reese noted that most Netflix content is photographed by a third -party studio, and that the company has little statement about where this content is photographed.
When Trump carried out a 25 percent tariff on Canada, a famous Hollywood photography center, industry experts told CNBC that he would not have a significant impact on production.
Intellectual property definitions are a new issue that raises questions for this industry.
