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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing “candy from a baby.” California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! President DJT”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s proposal to impose a 100% tariff on movies made outside the United States could lead to increased costs for companies like Comcast Corp, Walt Disney Company, and Netflix, which rely on international productions and markets, potentially affecting their stock prices negatively. The Vanguard Communication Services ETF and Communication Services Select Sector SPDR Fund, which include these companies in their portfolios, might also experience volatility as investors react to potential changes in the global film industry landscape. This policy could prompt shifts in production strategies and international collaborations, impacting the broader communication services sector.
Here are some of the stocks that might be affected:
Comcast Corp ((CMCSA)),
Walt Disney Company ((DIS)),
Netflix ((NFLX)),
Vanguard Communication Services ETF ((VOX)),
Communication Services Select Sector SPDR Fund ((XLC)).