In a post on Truth Social, Trump called tax incentives offered by foreign countries “a national security threat”
Shares of Netflix (NFLX), Disney (DIS), Paramount (PARA), Comcast (CMCSA), Warner Bros. Discovery (WDB) were under pressure on Monday after President Donald Trump announced plans for a new 100% tariff on foreign-made movies. “The Movie Industry in America is DYING a very fast death,” Trump said over the weekend. Commenting on the news, Wedbush said that the new tariff on foreign-made movies could be a positive catalyst for Hudson Pacific (HPP) as production moving outside of the country has been one of many headwinds for the company’s studio business over the past several years.
TARIFFS ON FOREIGN-MADE MOVIES:
President Donald Trump stated in a post to Truth Social over the weekend, “The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States 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. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
It is unclear how or when President Trump intends to implement these duties, as is who is being targeted.
POSITIVE CATALYST FOR HUDSON PACIFIC:
Wedbush notes that while a new form of tariff over the weekend from Trump–100% on foreign-made movies–may be disruptive to the stocks of content providers, the goal is to bring production back to the U.S. The firm further points out that production moving outside of the country has been one of many headwinds for Hudson Pacific’s studio business over the past several years, and perhaps the company will finally have a small victory to savor here, to the extent this new tariff concept is carried out. The stock should see “some life today,” which is well-timed given that it is reporting Q1 results after the close on Wednesday. Wedbush reiterates a Neutral rating on the shares with a price target of $3.
PRICE ACTION:
In morning trading, shares of Netflix have dropped 2.5% to $1,127. Also lower were Disney, Warner Bros. Discovery, Paramount, Lionsgate (LION), and Sony (SONY). Publicly traded companies in the film exhibition space that may be impacted include AMC Entertainment (AMC), Cinemark (CNK), Imax (IMAX), Marcus (MCS) and National CineMedia (NCMI).
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Originally Posted May 5, 2025 – Movie studio stocks slide after Trump proposes new foreign film tariff
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