Los Angeles, views of mountains in front of the Hollywood sign on 5 March 2017 in the United States.
James d. Morgan | Getty Image Entertainment | Getty images
Investors in Hollywood’s top studios and streaming services were released after President Donald Trump on Monday Proposed to implement 100% tariff on films made abroad,
Share of Netflix, Disney, of great quality And Warner Brothers Discovery Fall in front of the early bell, with Comcast-No universal also trade slightly below. Here is told how those shares shook:
- Netflix below 5%
- Disney below 3%
- WBD below 3%
- More than 2% paramount
- COMCAST below 1%
Trump called the tax encouragement to offer a “a national security threat” abroad on the truth social Sunday night. He said that he was authorizing the Department of Commerce to put a levy on all the films sent to the United States.
How Trump intends to apply these duties, it is not clear, as is actually being targeted and who will legs that potential tariff bill.
Hollywood studios have long been filmed abroad films, either for tax gains or to catch the natural setting of international places. Some films are shot in many countries, with many studios worldwide satellite production hubs.
When Trump first established 25% tariff on imports from Canada, a popular filming place for Hollywood films and television shows, industry experts told CNBC that it There will be no major impact on production. After all, most projects are shot digitally, and the final product can be transported online or with data storage devices. There is no physical good that exchanges hands in the same way, such as toys or clothes that are made in another country.
Questions are already roaming around. Which part of the production process will be killed with this duty? Will it only apply to movie projects or will the TV shows filled internationally also apply this levy? Has already been left out of full projects?
Additionally, with the first round of tariff announcements earlier this year, industry experts are worried about how these duties will affect relations with other countries. Hollywood has trusted the international box office to re -prepare the budget of the sublime film. China has already closed its doors for Hollywood products. Other areas can retaliate and do the same.
Disclosure: Comcast is the native company of NBCUNIVERSAL and CNBC.
