President Donald Trump said Wednesday that he was pausing most of his planned tariffs for 90 days, but that he was ratcheting up his tariff fight with China, as he seeks to reorder the global economy.
Trump posted Wednesday that he was pausing reciprocal tariffs for 90 days on “non-retaliating countries,” though the specific countries that would qualify are not clear at the moment. Treasury Secretary Scott Bessent said at an impromptu press conference that under the pause, most countries would still be subject to a 10 percent tariff, and that Trump wants to be involved in negotiating trade deals with other countries.
The implication of the move for Hollywood remains somewhat uncertain. The entertainment business of course is less reliant on physical goods, but as The Hollywood Reporter previously noted, it is very reliant on advertising, and the continued uncertainty could still cause an advertising pullback. Many advertisers, after all, could still find themselves dealing with tariff uncertainties.
Meanwhile, ratcheting up pressure on China could lead to further moves that could damage the entertainment business, such as a ban on U.S. films, a move by China to disregard U.S. intellectual property, or issues connected to companies with China exposure like Imax.
That being said, a willingness to cut deals could reduce recession concerns, leaving companies like The Walt Disney Co. (with its large theme park business) on stronger footing.
If the tariffs went on as originally planned, or if a recession followed, Hollywood would surely feel the impact, even if it isn’t in the physical goods business (though toys, merchandise and products are among the most profitable parts of the entertainment business’ licensing regime).
The biggest losers in a tariff war would likely be small and medium sized business owners, including many with connections to the entertainment business. Celebrities, influencers and others have launched product lines in recent years, and those products will often rely on imported materials and equipment, even if they are ultimately made in the U.S. The popular YouTube star Mr. Beast is among those who spoke out against the tariff move.