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Hollywood’s international business may change as a result of US President Donald Trump’s announcement on Monday that he will levy a 100% tariff on all foreign-produced films. According to Reuters, the action expands Trump’s trade policy into the cultural sector and poses new challenges for studios that rely on foreign markets.

Our film production company has been pilfered.

“Our movie-making business has been stolen from the United States of America, by other countries, just like stealing candy from a baby,” Trump wrote in a post on Truth Social announcing the decision.

At first, it was unclear which statute Trump would use to enforce the tariffs. A request for comment from Reuters was not answered by the White House. Netflix, Comcast, Paramount Skydance, Warner Bros. Discovery, and others did not immediately respond either.

Reaction of the market

According to Reuters, Netflix’s stock was down 1.5% in early trading. For studios that frequently rely on international audiences and cross-border collaborations for a large portion of their earnings, the strategy creates uncertainty.

Legal and industry uncertainties

Because modern films are usually produced, financed, and edited across numerous nations, studio executives told Reuters earlier this year that they were “flummoxed” by how such tariffs could operate.

According to legal and business experts, movies are typically regarded as intellectual property in international commerce in services, an area in which the US frequently has excess supply, casting doubt on the enforceability of tariffs. How co-productions between US and international studios would be handled is another topic.

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