Entertainment stocks like Netflix (NASDAQ:NFLX), Paramount Global (NASDAQ:PARA), and Walt Disney Co. (NYSE:DIS) are feeling the heat as concerns grow over how rising trade tensions between the U.S. and Canada could impact Hollywood productions.
For years, Canada has been a go-to destination for American film and television projects, offering tax breaks, a favorable exchange rate, and a highly skilled industry workforce. Cities like Vancouver and Toronto, along with scenic spots like Banff and Nova Scotia, have made it easy for studios to produce content efficiently. But now, that setup could be at risk.
With the U.S. imposing 25% tariffs on Canadian imports and Canada vowing to retaliate, some in Hollywood worry that the Canadian government could strike back by rolling back tax incentives or limiting access to production facilities. After enduring the COVID-19 pandemic and last year's actors' and writers' strikes, studios now face another challenge that could disrupt their recovery. Entertainment stocks remain under pressure as uncertainty looms.
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