Film studio shares fall after Trump suggests a foreign film tariff

Investors in Hollywood's top studios and streaming services were frightened on Monday after President Donald Trump proposed to implement a 100% tariff for films.

Shares of NetflixPresent DisneyPresent Paramount And Warner Bros. Discovery the opening bell was preceded by ComcastAlso in the possession of universal is slightly down. Here is how these share movements have picked out:

• Netflix lowered more than 5%
• Disney lowers more than 3%
• WBD drops by more than 3%
• Paramount more than 2% down
• Comcast less than 1% down

Trump named tax incentives that were offered “a national security threat” abroad in a post on social Sunday evening. He said he had authorized the Ministry of Commerce to impose all films produced abroad to the United States.

How Trump intends to implement these obligations is unclear, as well as exactly who will be targeted and who would meet this potential tariff calculation.

The Hollywood studios have made long films overseas, either for tax advantages or to capture the natural environment of international locations. Some films are made in several countries, with many studios have satellite production centers around the world.

When Trump initiated a tariff of 25% on imports from Canada for the first time, a popular location for Hollywood films and television programs, said industry experts CNBC that it would not have a major impact on production. Finally, the majority of the projects are shot digitally, and the transport of the end product can be carried out online or with a data storage device. There is no physical asset that exchanges the hands as well as toys or clothing that are produced in another country.

Questions already swirl. Which part of the production process would be affected with this obligation? Would it only apply to film projects or will television programs that are filmed internationally, also stimulate this tax? Are projects that have already been completed?

In addition, industry experts, such as in the first round of the tariff announcements at the beginning of this year, make about how these obligations will affect relationships with other countries. Hollywood is dependent on international health insurance sales to recover high films. China has already closed its doors to the Hollywood product. Other regions could return and do the same.

Disclosure: ComCast is the parent company of NBCUNIERSAL and CNBC.