3 6 Ke·2025-05-07 00:16Core Viewpoint - The announcement of a 100% tariff on foreign-made films by the U.S. government is seen as a misguided attempt to protect the American film industry, which is already facing significant challenges and may lead to adverse effects on Hollywood and the broader entertainment sector [2][3][5]. Group 1: Impact on the Film Industry - The U.S. film industry is experiencing a rapid decline, with foreign countries offering incentives to attract American filmmakers, leading to a significant loss of talent and production [2][3]. - Major media stocks fell sharply following the announcement, with Netflix down 4.55%, Lions Gate Entertainment down 8.5%, and Warner Bros. Discovery down 2.6% [2]. - The proposed tariffs could substantially increase production costs for Hollywood studios and trigger a global upheaval in the entertainment industry [2][3]. Group 2: Economic and Legal Concerns - Industry associations have urged Congress to carefully evaluate the economic and legal implications of the tariff policy, arguing that it will not revive Hollywood but rather have the opposite effect [2][3]. - The U.S. film industry had a trade surplus of $15.3 billion in 2023, with exports amounting to $22.6 billion, indicating that the film sector is not in the same position as the manufacturing sector that faces trade deficits [3]. Group 3: Structural Challenges - Hollywood is facing a structural crisis exacerbated by the pandemic, strikes, and now tariffs, with predictions of further declines in production and revenue [9][12]. - The film industry is experiencing a shift towards shorter content formats, with streaming becoming the primary viewing channel for 73% of American adults, indicating a decline in traditional cinema attendance [13]. - The overall production budget for U.S. film and television projects is projected to decrease by 26% compared to 2022, highlighting a trend of reduced investment in the industry [12]. Group 4: Potential Consequences - The tariff could lead to increased production costs, reduced output, and a decline in profitability, further diminishing audience interest in cinema [6]. - There is a risk of international retaliation, which could severely impact the revenue generated from overseas markets, where U.S. films typically earn about 70% of their total box office [6][9]. - The film industry's reliance on international markets makes it vulnerable to policy changes, with potential job losses and a decrease in cultural influence as a result of the tariff [6][9].