President Donald Trump has his sight set on a new sector with threats of tariffs to keep more things made in America.

Here's a look at what's Trumps comments on the "dying" movie industry mean.

What Happened: On social media, Trump threatened the movie industry with tariffs on movies produced "in foreign lands," a move that could impact companies like Walt Disney Co (NYSE:DIS), which generates billions of dollars at the box office annually.

"The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States," Trump posted on his Truth Social account recently.

Trump called this a "National Security threat" and "propaganda."

"I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% tariff on any and all Movies coming into our Country that are produced in Foreign Lands."

In all caps, Trump said "We Want Movies Made In America, Again!"

The latest tariff threat has sent shockwaves across the movie industry with much uncertainty about what Trump could actually do and what the tariff plans would mean if imposed, as reported by Variety.

Trump's comments that the movie sector is dying in America may be premature with 2025 box office up 15.8% year-over-year, according to Variety.

That could be a positive for movie theater companies like AMC Entertainment Holdings Inc (NYSE:AMC) and Cinemark Holdings, Inc. (NYSE:CNK) as the 2025 and 2026 content slate will see many blockbuster films hit theaters.

Threats of tariffs could slow down the movie theater sector and those stocks and also impact big movie companies like Disney, Paramount Global (NASDAQ:PARA)(NASDAQ:PARAA), Warner Bros. Discovery (NASDAQ:WBD), Sony Group Corp (NYSE:SONY), Comcast Corp (NASDAQ:CMCSA) and more.

While Trump's comment on the movie industry has that sector rattled, there is also fear the tariffs could extend to television series and the streaming sector, impacting Netflix Inc (NASDAQ:NFLX), which produces numerous series outside of America.

Tariffs on films and TV shows could impact margins for entertainment companies, which of course, would welcome the question of whether those higher costs would be passed on to consumers via higher movie ticket prices.

Read Also: Netflix Crushes Q1, Says It’s ‘Working Hard To Improve And Expand’ Its Offering

Why It's Important: At this point, Trump's tariff threat appears to be in the exploratory phase and not ironed out yet. While Trump claimed films being made outside America are a "national security threat," he may have to prove this is the case to be able to authorize tariffs.

Trump's comments are also rather vague, with many movies having filming locations outside of the U.S., but maintaining production credits by American companies.

One of the likely early examples that could show how the sector will be attacked is Paramount film "Mission: Impossible – The Final Reckoning." The film was already filmed prior to Trump's tariff threat, but counts the United Kingdom as its primary filming location.

With a May 23 opening date, the film's tariff status could be closely monitored by the sector.

Top film franchises like "Avengers" and "Avatar" have filming locations outside the U.S. Famous film franchises like "Star Wars" and "The Lord of the Rings" famously had filming locations outside the U.S.

Often times, franchises include foreign locations as part of the plot such as in James Bond films. The threat of tariffs could have film studios questioning those moves depending on what the tariff would apply to as far as production locations.

Industry veterans warn the decision for tariffs could significantly harm the sector.

"It's insane. So U.S. companies can only make U.S. films? James Cameron can't make Avatar overseas? Who pays the tariffs? Leading independent distributors would all be out of business if it's them," a veteran U.K. producer told Deadline.

A French distributor told Deadline the move could "kill the U.S. industry quicker."

While Trump is seeking to punish films not made in America, others have ideas to reward films and TV shows made in America. California Gov. Gavin Newsom is pushing for a plan to have $750 million in annual incentives for content filmed in the state, as reported by Deadline.

"We believe he has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law," Newsom senior advisor for communications Bob Salladay told Deadline.

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