Mei Ri Jing Ji Xin Wen·2025-05-06 02:13Core Viewpoint - The U.S. stock market experienced a collective decline, with the S&P 500 index ending a nine-day winning streak, influenced by President Trump's proposal to impose tariffs on foreign-made films, leading to significant drops in major film companies' stock prices [1][2]. Group 1: Market Reaction - Netflix saw a drop of 1.94%, Paramount fell by 1.57%, and Disney decreased by 0.41% by the end of trading [2]. - Early trading witnessed Netflix declining by as much as 4%, while Paramount and Disney dropped over 2% before slightly recovering [1]. Group 2: Tariff Proposal Details - President Trump announced plans to impose a 100% tariff on foreign-made films, citing a desire to revive the U.S. film industry and address what he perceives as a national security threat due to Hollywood's decline [6]. - The White House has not made a final decision on the tariff but is exploring all options to implement Trump's directive [5][6]. Group 3: Industry Impact Analysis - Analysts warn that the proposed tariffs could backfire, harming U.S. film companies that often produce films overseas to reduce costs or benefit from tax incentives [7]. - The imposition of tariffs may increase production costs for U.S. companies, potentially diminishing their global competitiveness [7]. - Industry experts express concern that the tariffs could lead to higher movie prices, resulting in fewer viewers and exacerbating the existing crisis in the film industry [10]. Group 4: Expert Opinions - William Reinisch, a senior researcher, argues that the tariffs would be more harmful than beneficial, stating that the rationale of foreign films posing a national security threat is unconvincing [9]. - Roxborough, a Hollywood industry insider, emphasizes that without economic incentives to lower production costs, U.S. film companies are unlikely to return from overseas production [10].