On Wednesday, President Donald Trump announced a 90-day hiatus on the majority of his proposed tariffs, while signaling an escalation in his tariff spat with China as he endeavors to reshape the global economic landscape. In a post shared that day, Trump revealed that a temporary reprieve from retaliatory tariffs would be granted to "non-retaliating countries" for a period of 90 days, albeit the specific nations eligible for this exemption remain ambiguous at present.
At an unplanned press briefing, Treasury Secretary Scott Bessent clarified that despite this pause, most countries would still face a 10% tariff, with President Trump eager to take an active role in negotiating trade agreements with various nations.
The ramifications of this decision for Hollywood remain somewhat nebulous. While the entertainment industry relies less heavily on physical goods, it is profoundly dependent on advertising, as previously highlighted by The Hollywood Reporter. The lingering uncertainty could still prompt advertisers to scale back their spending, given that many may still grapple with tariff-related ambiguities.
Moreover, intensifying the pressure on China might lead to further actions that could deal a blow to the entertainment sector, such as a ban on American films, China's disregard for U.S. intellectual property, or issues tied to companies with China exposure, like Imax.
That said, a readiness to broker deals could alleviate fears of a recession, bolstering companies such as The Walt Disney Co., with its expansive theme park operations, into a stronger position.
Had the tariffs proceeded as initially envisioned, or if a recession ensued, Hollywood would undoubtedly feel the pinch, even though it doesn't primarily deal in physical goods (albeit toys, merchandise, and products are among the most lucrative facets of the entertainment industry's licensing model).
The tariff war's biggest casualties would likely be small and medium-sized business owners, including numerous entities connected to the entertainment world. Celebrities, influencers, and others have ventured into launching product lines in recent times, often relying on imported materials and equipment, even if the final products are manufactured in the U.S. Popular YouTube personality MrBeast is among those who have spoken out against the tariff measures.
