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Movie-Tariff Plan Rattles Media Stocks. The Fine Print Will Be Critical
Express News | Trump Says He'll Meet With Film Industry on Movie Tariffs
Can Trump Really Put Tariffs on Films Produced Abroad? The Law Says No
Can President Trump Really Put Tariffs on Films Produced Abroad? The Law Says No.
Movie tariffs? Netflix is bewildered.
Netflix was previously seen as a "safe haven" from tariff risks, but Trump's policies will directly impact its business model. Citi analysis points out that in the worst-case scenario, Netflix's EPS could decrease by about $6, a decline of 20%, but the company has various strategies that may mitigate the impact, including relocating production to the USA, restricting access to overseas content for US users, and increasing subscription prices.
Trump imposed a 100% tax on overseas films, causing a significant drop in the stock prices of American media companies, with Netflix and Disney experiencing sharp declines.
On Monday (May 5th), Hollywood fell into unprecedented chaos.