Did Disney Stocks "Tank" After Trump Hollywood Tariff Announcement?
Right now, several media sites are talking about Disney's stock "tanking" after President Trump announced that they may implement a 100% tariff on films made overseas. With the announcement, several media companies saw a slight drop in their stock prices, including Disney.
But did Disney's stocks "tank"?
No. They temporarily dropped to $89.70 but quickly rebounded and are currently at the same price as before the announcement. The drop wasn't severe either, only going down about $3 per share for a very short time.
The stock price is still well above the 52-week low of $80.10.
Of course, it is still below $100 and nowhere near the $122 price it was at in early 2024 or even the almost $200 per share price the stock reached in 2021.
Overall, the stock has tanked, but the tariff announcement that shook Hollywood has not dropped Disney's stock.
What was the tariff announcement?
President Trump suggested that filming in other countries could lead to a National Security threat and suggested a 100% tariff on any films coming into our country from foreign lands. Many felt it was also implied that the US film industry would also be taxed if they filmed in other countries.
Here is what the President posted on Truth Social,
"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. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, 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. WE WANT MOVIES MADE IN AMERICA, AGAIN!"
No final decisions have been made.
According to White House spokesman Kush Desai, no final decisions have been made,
“Although no final decisions on foreign film tariffs have been made, the administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again."
For now, Disney Stock is fine. Netflix did see a 1.45% drop today, but if the tariff issue is walked back they will likely see a bounce back as well. Netflix does depend more on foreign content than Disney, and they are also bigger than Disney.
What do you think? Comment and let us know!