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Although audiovisual products are not directly affected, experts are concerned that Trump’s duties could have a negative impact on Hollywood and the entire media industry
Although audiovisual products are not among those directly affected by Donald Trump’s duties, industry players, particularly in Hollywood, fear indirect damage. Analysts at ‘Variety’ warn that although the duties will not directly affect the costs of companies such as media and entertainment companies, the knock-on effects could slow the economy, affecting Hollywood as well.
Expert analysis: ‘The domino effect of tariffs’
Matthew Dolgin, senior analyst at Morningstar, points out that while companies like Apple and Roku might feel the effect directly, most of the big players in the industry depend on consumer spending. An economic slowdown could reduce this spending, particularly in entertainment and media, with ‘indirect damage’ to Hollywood.
CJ Bangah of PwC points out that an economic downturn caused by duties could also reduce advertising investment, which constitutes a significant slice of income for companies in the industry. For Hollywood, this could result in a ‘double whammy’, with declines in both consumer spending and advertising.
Concerns for Hollywood’s image in Europe
In addition, Maggie Switek of the Milken Institute points out that economic changes and the US approach could also affect sentiment towards American films in Europe. ‘It will be important to monitor public opinion data to understand the possible long-term consequences,’ said Switek.
The effect on spending habits and falling confidence
Even before the tariffs announcement, US consumer confidence was in decline, with the Consumer Confidence Index falling in March. Trump’s announcement exacerbated the situation, potentially increasing uncertainty in the markets and further influencing consumer spending decisions.
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