Benzinga·2025-05-05 17:11Core Viewpoint - President Trump's threats of tariffs on foreign-produced movies could significantly impact the American movie industry, which he claims is "dying" due to incentives offered by other countries to filmmakers [2][4]. Industry Impact - Trump's comments have created uncertainty in the movie industry, particularly for major companies like Walt Disney Co, which generates billions at the box office annually [1][4]. - The movie sector's performance may contradict Trump's claims, as the box office is projected to increase by 15.8% year-over-year in 2025, potentially benefiting companies like AMC Entertainment and Cinemark Holdings [3]. - Tariffs could slow down the movie theater sector and affect stock prices of major studios such as Disney, Paramount Global, and Warner Bros. Discovery, as well as streaming services like Netflix, which produces many series outside the U.S. [4][5]. Tariff Details - Trump has authorized the Department of Commerce to begin the process of instituting a 100% tariff on movies produced in foreign lands, labeling it a "national security threat" [2][6]. - The vagueness of Trump's comments raises questions about how tariffs would apply to films with foreign filming locations but American production credits [7][9]. Examples and Concerns - The upcoming Paramount film "Mission: Impossible – The Final Reckoning," filmed primarily in the U.K., may serve as an early example of how tariffs could affect the industry [7][8]. - Industry veterans express concerns that such tariffs could harm the sector significantly, with some suggesting that it could lead to the collapse of independent distributors [10][11]. State Incentives - In contrast to Trump's tariff threats, California Governor Gavin Newsom is advocating for $750 million in annual incentives for content filmed in the state, aiming to support the local industry [10].