Hollywood Faces Turbulence Amid Tariff Proposals and AI Race

May 6, 2025 - 07:16

In a surprising turn of events, media stocks have experienced a significant decline following President Trump's announcement of potential 100% tariffs on foreign-produced films. This proposal has sent shockwaves through Hollywood, raising concerns about the financial implications for the industry.

At the Milken Institute Global Conference, Treasury Secretary Scott Bessent emphasized the urgency for the United States to lead in the development of artificial intelligence. He underscored that as China rapidly advances in this field, it is crucial for the US to maintain its competitive edge.

Daniel Morgan, a senior portfolio manager at Synovus Trust, provided insight into the market's recent downturn. After a promising four-day rally, the combination of tariff threats and the competitive landscape of AI has created uncertainty among investors, leading to the current dip in stock prices. The intersection of trade policies and technological advancements continues to shape the future of the entertainment industry and the broader market.