Analyst warns that 100% films rate could be retreated and triggered the “greatest risk” for U.S. studies

• President Donald Trump proposed a 100% rate on Sunday in movies Produced outside the United States, the movement has made nervous investors of major streams and North -American studies, and actions for companies such as Netflix and Paramount Slid. Analysts warn that the rate, though not completed, would involve less and more expensive films.

As President Donald Trump seeks to impose a 100% rate In the films produced outside the United States, movie production studies investors are clumsy.

The prices of the actions of the main studies and streaming companies slid after the news, with Netflix Actions that are trading by 1.5% of noon on Monday and Paramount shares were reduced by 0.7%. Disney and Universal father Comcast On Monday, it was reduced to previous negotiation before recovering most of its respective prices at the closing of Friday.

Said Trump on a Sunday Publication of social networks It plans to implement taxes on foreign films as a means to prevent the North -American film industry from “a very quick death”.

“Other countries offer all kinds of incentives to keep our filmmakers and studies away from the United States,” he said. “Hollywood and many other U.S. areas are being devastated. This is an effort arranged by other nations and therefore a national security threat.”

The spokesman for the White House, Kush Desai Fortune There have been no final decisions on foreign film rates.

“The administration is exploring all options to deliver President Trump’s directive to safeguard the national and economic security of our country, making Hollywood again great,” he said.

North -American studies have become more and more Filming projects abroad As a means of taking advantage of tax benefits or finding unique locations for television films. Netflix announced in February plans for Invest billion dollars To produce films and series in Mexico for the next four years.

According to one report Since the Olsberg Spi Intelligent Entertainment Industry Consulting, 36 European countries and 15 Asian countries have offered incentives to film production in 2024, to 17 European countries and seven Asian countries offering the tax credits and sales in 2017.

Analysts warn the consequences of rates

Although Trump suggested that the foreign film rate would provide a boost for the filmmakers and studies in the United States, analysts warn that the movement could have the opposite effect, leading to an increase in production costs that would make studies to make difficult decisions.

“100% rates in some or all costs of a movie … would involve fewer movies, more expensive films and low gains for all businesses,” Morgan StanleyHe wrote in a Monday note to the investors. “The reality is that for any specific movie, there may be written, production, editing, post -production, visual effects, all made in different countries.”

By 2023, North -American films contributed $ 22.6 billion in exports and contributed to a commercial surplus of $ 15.3 billion for the industry, according to data of the Motiona Association.

The information on which Trump’s proposal would include is scarce, leading Swinburne to ask questions about which projects, such as ongoing or newly completed outbreaks, could be affected and, if the tariff transfer forms a television shooting path abroad.

The most important thing is the potential risk that countries impose retaliation rates on North -American projects or blocking North -Americans.

“Foreign governments will respond by blocking the export of the United States content, through theatrical or streaming or both?” Swinburne said in his note. “This is perhaps the greatest risk, increasing the potential that the streaming services of the United States are taxed to significantly higher rates or even reducing the extent of Hollywood content.”

This story originally presented to Fortune.com