CNBC Daily Open: The Trump movie thriller no one wants to watch

A golden Oscar statue is placed on the red carpet for the 97th Academy Awards at the Dolby Theatre on February 28, 2025, in Hollywood, California.

Among the various tariff moves made by U.S. President Donald Trump, the introduction of a 100% tariff on foreign-produced movies stands out as particularly unusual, joining the perplexing method used by his administration to calculate tariff rates. Trump did not provide specifics on how the tariff would be enforced, or if it would even be put into effect, but simply announcing the tariff caused the stock prices of entertainment and media companies like Netflix and Paramount to drop.

Apart from the financial implications, there are broader questions about the impact of such tariffs on a cultural level. Would the Oscars eliminate the Best Foreign Film category? Would all movies need to be set in the U.S.? Would American actors in international films face penalties?

While these may seem like far-fetched concerns, predicting the actions of the U.S. president is challenging, as Trump’s tenure resembles a suspenseful drama. Although his decisions may boost viewership, they may not necessarily be well-received by others.

Key Points for Today:

– The S&P 500 ended a nine-day winning streak, with losses across U.S. markets.
– Berkshire Hathaway shares fell after Warren Buffett proposed a CEO succession plan.
– Trump initially announced a 100% tariff on foreign films but later backtracked on the decision.
– Palantir shares fell despite the company meeting earnings expectations and raising its revenue outlook.
– Ford exceeded first-quarter expectations but suspended its 2025 financial guidance due to expected tariff impacts.

In the latest trade developments, the closure of the de minimis rule has led to significant tariffs being imposed on Temu and Shein, disrupting their e-commerce operations. Despite this, experts believe the companies can still compete in the U.S. market.