U.S. movie stocks decline pre-market; Netflix and Warner Bros Discovery down nearly 2%, Disney down nearly 1%. Trump announces 100% tariff on films produced outside the U.S.
U.S. movie stocks are declining in pre-market trading on September 12, 2025, following President Donald Trump's announcement of a 100% tariff on films produced outside the United States. The move has sent shockwaves through the industry, with major players such as Netflix and Warner Bros. Discovery down nearly 2% and Disney down nearly 1% .
The decision, which aims to protect domestic film production, has raised concerns about the potential impact on global film distribution and the U.S. entertainment industry's reliance on international content. The tariff is part of a broader strategy to bolster U.S. manufacturing and job creation, but it could lead to increased costs for consumers and potentially limit access to diverse and international content.
Investors are closely monitoring the situation, with many expressing uncertainty about the long-term implications. The pre-market decline suggests that the market is factoring in the potential disruptions and costs associated with the new tariff policy. Additionally, the announcement comes at a time when the U.S. economy is already grappling with inflation, a possible government shutdown, and ongoing geopolitical tensions.
The U.S. movie industry has been a significant contributor to the economy, generating billions in revenue and supporting thousands of jobs. However, the new tariff policy could disrupt this dynamic, potentially leading to job losses and reduced investment in the sector. The impact on stock prices is expected to be felt across the board, with companies that rely heavily on international content being particularly affected.
As the market awaits further details and potential responses from the industry and policymakers, investors are advised to remain vigilant. The situation is fluid, and any changes in policy or market sentiment could lead to further fluctuations in stock prices. It is essential to stay informed and follow the latest developments as they unfold.
References
https://www.barchart.com/story/news/35095247/stocks-set-to-open-higher-as-bond-yields-fall-trumps-shutdown-talks-in-focus
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