The impact of President Donald Trump’s suggested tariffs on overseas produced films might resonate throughout various corners of the entertainment sector, as stated by Raymond James.
Currently, the emphasis is on movies; however, other types of media such as music, video games, and webcomics shouldn’t overlook these advancements,” noted Raymond James analyst Andrew Marok in a report issued Tuesday. “While the remarks from the White House were concentrated solely on the U.S. film sector, it wouldn’t be hard to envision the administration’s reasoning extending to other mediums like music, gaming, and webcomics due to the international scope of content production and distribution.
Marok specifically highlighted video game powerhouse Electronic Arts Inc., which runs several studios beyond the U.S. boundaries, such as Codemasters in the UK, DICE in Sweden, and E.A. Korea in South Korea. Despite the fact that many of EA’s major series are crafted by American-based teams, the intricate process of developing games involves international collaboration, as noted by Raymond James. Competitor Take-Two Interactive Software Inc. similarly has numerous global studio operations.
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E.A. shares ended Tuesday’s session down 0.1%, while Take-Two Interactive’s stock was up 2.9%.
Another video game entity that might experience effects is the online gaming firm Roblox Corp. Although specific details about the breakout of their content creation haven’t been disclosed, Raymond James points out that Roblox operates as a worldwide platform “in every sense,” with 79% of its 2024 daily active users and 37% of its revenue originating from regions outside the U.S. and Canada.
Within the domain of web comics, Webtoon Entertainment Inc., a leading storytelling platform, sees South Korea and Japan as its biggest markets, as reported by Raymond James. “Although the firm is focusing on expanding within the U.S. as part of its strategic plan, revenues remain largely driven by Asia,” noted Marok.
Related:
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Roblox shares ended Tuesday’s session down 1.5%, while Webtoon’s stock was down 4.3%.
In a
post
On his Truth Social platform on Sunday, Trump declared that the American film industry “is dying rapidly” and instructed the Department of Commerce and the U.S. Trade Representative to promptly initiate the implementation of a 100% tariff “on every single movie entering our country that is produced abroad.”
However, a White House spokesperson said Monday that “no final decisions” have been made on foreign film tariffs and all options are being explored, Variety
reported
.
Related:
China plans to aim at Hollywood movies as part of its tariff disputes. Here’s what this move might imply for stocks in this film industry.
The
legality
of Trump’s proposed tariff on foreign-produced movies has also come under scrutiny.
The Motion Picture Association declined to comment directly on the president’s movie tariff threat. Hollywood generated $22.6 billion in exports and a trade surplus of $15.3 billion in 2023, according to the MPA’s latest economic impact report.