President Donald Trump said Wednesday that he has suspended most of the planned tariffs for 90 days, but is stepping up his tariff fight with China as he tries to rearrange the global economy.
Trump posted Wednesday that he has suspended mutual tariffs for 90 days in “non-retaliation countries,” but at this point it is not clear what specific countries are eligible for. Treasury Secretary Scott Bessent said in an improvised press conference that under the suspension, most countries will be subject to 10% tariffs and that Trump wants to be involved in negotiating trade deals with other countries.
The meaning of Hollywood’s movement remains somewhat uncertain. Of course, the entertainment business does not rely on physical products, but as Hollywood reporters pointed out earlier, it is highly dependent on advertising, and the continued uncertainty can still cause ad pullbacks. After all, many advertisers were able to find themselves dealing with tariff uncertainty.
Meanwhile, pressure on China could lead to further movements that could damage entertainment businesses, such as a US film ban, a move by China to ignore US intellectual property, or issues related to companies with Chinese exposure, such as IMAX.
That being said, willingness to cut transactions could reduce recession concerns, leaving companies like Walt Disney (its large theme park business) in a stronger footing.
If tariffs continue as planned or the recession continues, Hollywood will certainly feel an impact, even if it is not a physical commodity business (toys, goods and products are one of the most profitable parts of the entertainment business’s licensing regime).
The biggest loser of the tariff war could be small and medium-sized business owners, including many who have connections to the entertainment business. Celebrities, influencers and others have launched product lines in recent years, and even if these products were ultimately made in the US, they often rely on imported materials and equipment.
