Trump movie tariffs threat bashes entertainment stocks

The impact: Lionsgate Studios (-5.8%), Netflix (-1.3%) and Paramount (-0.9%) saw the biggest declines in early afternoon trading, though all three had rebounded from earlier lows.

• Disney opened down 3% before reversing to a small gain, while WBD also pared early losses and was trading down around 0.6% by early afternoon.

Zoom in: "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," Trump said Sunday in a Truth Social post.

• "This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!"
• Trump said he'd direct the secretary of commerce and the U.S. trade representative to implement the tariff on "any and all Movies coming into our Country that are produced in Foreign Lands."

Yes, but: The White House clarified Monday that "no final decisions on foreign film tariffs have been made," White House spokesman Kush Desai told The Hollywood Reporter.

• But "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," he added.