MW Could a Trump tariff on foreign-produced movies impact videogame makers?

By James Rogers

Videogame makers such as Electronic Arts operate a number of studious outside the U.S.

The ripples from President Donald Trump's proposed tariff on foreign-produced movies could be felt in furthest reaches of the entertainment industry, according to Raymond James.

"Focus is on movies for now, but other forms of media like music, videogames and web comics should not ignore developments," wrote Raymond James analyst Andrew Marok, in a note released Tuesday. "The commentary from the White House was focused entirely on the domestic film industry, but we could easily see the administration's logic spreading to other forms of media like music, videogaming, and web comics given the global nature of content creation and consumption."

Marok pointed, in particular, to videogame giant Electronic Arts Inc. $(EA)$, which operates a number of studios outside the U.S., including Codemasters in the U.K., DICE in Sweden and E.A. Korea in South Korea. While most of E.A.'s tentpole franchises are developed by U.S.-based studios, the complex nature of game development means that content development traverses borders, according to Raymond James. Rival Take-Two Interactive Software Inc. (TTWO) also operates a number of studios internationally.

Related: Can Trump really put tariffs on films produced abroad? The law says no.

E.A. shares ended Tuesday's session down 0.1%, while Take-Two Interactive's stock was up 2.9%.

Another videogame name that could feel the impact is online-gaming company Roblox Corp. $(RBLX)$. While breakouts of the company's content production have not been given, Raymond James notes that Roblox is a global platform "in all aspects," with 79% of 2024 daily active users and 37% of revenue coming from outside of the U.S. and Canada.

In the web-comics realm, storytelling platform Webtoon Entertainment Inc. $(WBTN)$ counts South Korea and Japan as its largest markets, according to Raymond James. "While the company is emphasizing the U.S. as part of its growth strategy, Asian markets still account for the lion's share of revenue," wrote Marok.

Related: Trump threatens 100% tariff on foreign-made movies

Roblox shares ended Tuesday's session down 1.5%, while Webtoon's stock was down 4.3%.

In a post on his Truth Social network Sunday, Trump described the movie industry in America as "dying a very fast death" and authorized the Department of Commerce and the U.S. trade representative to immediately begin the process of instituting a 100% tariff "on any and all Movies coming into our Country that are produced in Foreign Lands."

However, a White House spokesperson said Monday that "no final decisions" have been made on foreign film tariffs and all options are being explored, Variety reported.

Related: China will target Hollywood films in tariffs war. What it could mean for this cinema stock.

The legality of Trump's proposed tariff on foreign-produced movies has also come under scrutiny.

The Motion Picture Association declined to comment directly on the president's movie tariff threat. Hollywood generated $22.6 billion in exports and a trade surplus of $15.3 billion in 2023, according to the MPA's latest economic impact report.

-James Rogers

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May 06, 2025 16:37 ET (20:37 GMT)

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