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After efforts to shore up the U.S. manufacturing industry through his reciprocal tariffs, President Donald Trump has shifted his focus to the movie industry.
In a lengthy post on his Truth Social platform, Trump called upon the Commerce Department and U.S. Trade Representative to "immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands."
The rationale behind the call is the president's view that the U.S. movie industry was "dying a very fast death."
He said that countries are offering incentives to draw U.S. film makers and studios away from the country, which has led to "devastation" in Hollywood and many other areas within the country.
The president deemed this as a "national security threat.'
"WE WANT MOVIES MADE IN AMERICA AGAIN!" he posted in his typical all-caps style.
Commerce Secretary Howard Lutnick was quick to respond. "We're on it," he said in a post on X.
Films made by U.S. studios are often shot in the U.K. and Canada, a Wall Street Journal report said.
A user on X, formerly Twitter, noted that prestigious Hollywood projects currently being shot overseas include Marvel's "Avengers: Doomsday," Christopher Nolan's "The Odyssey," "Avatar 4," and "Supergirl."
The Journal's report said that if other countries retaliate, it could damage Hollywood studios, given that most big-budget movies earn the lion's share of revenue overseas.
Implementation of the proposed tariffs will necessitate the Trump administration working out a methodology for valuing movies and a threshold for classifying them as imports, as unlike physical goods, movies do not move through ports.
The move should not have come at a worse time. Film and television production in Los Angeles has fallen by about 40% over the past decade, a CNBC report said, citing data from FilmLA.
Trump's statement on bringing Hollywood under tariff net sparked brisk retail chatter on Stocktwits.
One user said the move may have been prompted by the headlines that Netflix (NFLX) is tariff-proof or Trump's perception of how bad movies have been lately.
Netflix stock ended Friday's session at an all-time high of $1,156.49.
Another user suggested that Netflix may have to bid goodbye to one of its most lucrative franchises — Squid Games.
Retail also saw a hit to the Disney stock. "$DIS below $80 tomorrow," they said in the post.
A user also flagged the likelihood of a "U-turn" on this.
"Trump buddies to load up on movie production companies after his movie tariff then bank on the rip when he pauses/changes his mind," they said.
Users also highlighted that the move could be negative for Warner Bros. Discovery (WBD), Paramount (PARA), and Fox Corp. (FOX) as well.
The Communication Services Select Sector SPDR ETF Fund (XLC), which includes these stocks, has gained nearly 1% this year.
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