Trump Imposes 100% Tariff on Foreign-Made Movies

If Trump follows through with his threat, it would mark the first time he’s essentially imposed a tariff on a service rather than a good.

The state, meanwhile, has proposed and put in effect many tax incentives, as have other American cities.

Share of Netflix (NFLX) opened down 1% Monday morning following Trump’s post, while other movie-related companies, including AMC (AMC) and The Walt Disney Company (DIS), opened higher.

Movie ticket sales are down in the United States as the number of major releases hitting theaters has tumbled since the pandemic — and consumers have shifted their viewing habits to streaming platforms to watch at home.

US box office gross topped out at just under $12 billion in 2018 before nosediving to just over $2 billion in 2020, when many theaters were shut down because of Covid. Although theaters have rebounded, the number of releases is about half of what it was in 2019. The total domestic box office gross hasn’t eclipsed $9 billion since.

Warner Bros. Discovery, CNN’s parent company, has raked in $4 billion in global box office sales so far this year, the first studio to hit that level.