Core Viewpoint - The proposed "movie tariffs" by Trump are expected to exacerbate the already declining state of the Hollywood film industry, which is facing significant challenges including rising production costs and decreasing box office revenues [2][4][10] Group 1: Market Conditions - The global film market is experiencing a downturn, with North America, Japan, and Europe all showing varying degrees of decline [1] - The North American box office has seen a significant drop, with total revenue for the first five months of the year only reaching $2.46 billion, which is less than two-thirds of the Chinese market [7] - Hollywood's production in Los Angeles has decreased by 22% in the first quarter, with a 33% decline over the past five years, indicating a long-term downward trend [4] Group 2: Production Costs and Tariffs - The rising production costs in the U.S. due to inflation have led many studios to move their operations overseas to take advantage of lower labor costs and tax incentives, with some projects receiving up to $100 million in tax rebates [2][4] - The imposition of tariffs on films produced outside the U.S. could significantly increase production costs, potentially doubling the budget of major films from $100-200 million to $300-400 million, making it nearly impossible to recoup costs at the box office [6][4] Group 3: Quality and Audience Engagement - The quality of Hollywood films has been declining, with many recent releases being criticized for lack of originality and over-reliance on sequels, leading to audience disengagement [9] - The overseas market, particularly in China, has seen a drastic decline in box office performance, with revenues dropping by at least 50% from peak levels, which poses a serious threat to Hollywood's profitability [9]