12
Credit: Inside the MagicDonald Trump has had a contentious relationship with The Walt Disney Company for months. He claims that the company is “woke” and that ABC — which is owned by Disney — has discriminated against him in various news reports.
Since taking office, Trump has kept Disney in his sights, even going so far as to have his Justice Department investigate Disney over its DEI practices. That same Justice Department is also investigating Disney’s purchase of a controlling interest in Fubo TV after Fubo dropped a lawsuit against Disney.
Related: New Trump Administration Already Going After Bob Iger
However, it was Trump’s most recent announcement that left, not only Disney, but the rest of Hollywood shaking their heads and wondering what will become of the film industry.
On Sunday evening, the President sent out a shocking message on his Truth Social platform that said he was going to “authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.”
He further said that the film industry was dying “a very fast death” and that other nations were trying to entice Hollywood to make movies overseas, which he claimed was a “National Security threat.”
Related: White House Turns Donald Trump Into Sith Lord in Divisive ‘May the Fourth’ Post
The startling tweet sent stocks tumbling for many entertainment companies, including Disney, Netflix, Warner Bros. Discovery, Paramount, Lionsgate, and more, when the market opened on Monday. The stocks made a slight rebound, but still remain in the red.
While the President seemed determined to enact the massive tariff, the White House did not seem so sure when asked about the tariffs just one day after the announcement.
Although Trump said his team was moving forward on the tariffs, White House spokesman Kush Desai seemed to walk that back in the May 5 statement, while also saying ” the administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
In addition to appearing to reverse its movie tariffs announcement, it is unclear how the administration would enact such a policy.
Would the tariffs apply to box office films and films made for streaming? We don’t know. Would the tariffs be applied to box office revenue or the overall cost to make the film? We don’t know. How do studios make movies that don’t take place in the United States if they want to film on location? That would become incredibly difficult.
This is not the first time Mr. Trump has made sweeping statements about enacting huge tariffs and then changed his mind. At one point, he announced large tariffs on nearly every country in the world, and then stopped that idea and only enacted smaller tariffs on some countries. He also said there would be massive tariffs on the auto industry, which he recently eased, as many feared customers would simply stop buying cars.
Do you think Trump should continue to enact such extreme tariffs? Do you think they will help areas like the entertainment industry, or will they end up causing major problems? Share your thoughts with us in the comments!