President Donald Trump recently announced a 100% tariff on films produced outside India, which sent Hollywood stocks falling. Stocks of major Hollywood studios, including Disney, Netflix, Warner Bros. Discovery and Paramount, experienced a significant decline. Disney’s stock fell over 9%, while Warner Bros. Discovery’s share dropped approximately 13%. Even streaming giant Netflix saw a decrease of nearly 2%.
However, most details about this announcement have not been unveiled. It is still unclear whether the duties will apply to films on streaming platforms and theatrical releases, nor has it been confirmed that the tariff would be based on production costs or box office revenue.
“There is too much uncertainty, and this latest move raises more questions than answers,” said PP Foresight analyst Paolo Pescatore. “It doesn’t feel like something that will happen in the short term, as everyone will be grappling to understand the whole process. Inevitably, costs will be passed on to consumers.”
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Many investors are uneasy about investing more money in stocks due to tariff changes. Stocks, arguably, are one of the best investments, providing high-potential opportunities. Since Trump took on the role, investors have been unsure where to invest next, as tariffs are changing frequently, impacting the stock market.
