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The Chinese government retaliated after the U.S. raised tariffs on imports from the country, restricting the number of Hollywood films it would allow to be showcased in its movie theaters.
The Chinese box office was once a coveted space for American-made movies, so much so that studios produced films that would appeal directly to its audiences.
However, as China has expanded its local film production, its audiences have gravitated toward its own domestic fare and Hollywood films have seen a significant decline in ticket sales from the region.

Posters of film ‘Despicable Me 4’, film ‘Stand By Me’ and film ‘A Legend’ are displayed at the entrance of a cinema on July 16, 2024 in Shanghai, China.
Vcg | Visual China Group | Getty Images

Hollywood is being pulled into President Donald Trump’s trade war.
After Trump escalated tariffs on Chinse imports earlier this week, the Chinese government retaliated, including by restricting the number of Hollywood films it would allow to be showcased in its movie theaters.

Disney and Warner Bros. Discovery were among the companies that saw their stocks dip this week during volatile trading in response to tariff changes. Both stocks were trading down early Friday.
The Chinese box office was once a coveted space for American-made movies, so much so that studios produced films that would appeal directly to an international audience. However, as China has expanded its local film production, its audiences have gravitated toward the country’s own domestic fare, and Hollywood films have seen a significant decline in ticket sales from the region.
“The Chinese market has become very challenging for U.S. studios,” said Ann Sarnoff, former CEO and chairwoman of Warner Bros. “Rental rates at 25% were already significantly lower than other markets, and over the last few years, it’s become harder and harder to get your movie into the Chinese market.”
Audiences have been prioritizing home-grown Chinese movies, she added.
“This really affects the economics for U.S.-based studios,” she said. “They used to be able to count on the Chinese market to help bolster the profits on a movie. Now when studios make financial estimates for a given movie, they put much less, or in some cases, zero, in the projections for the Chinese box office.”

The expiration in 2017 of the U.S.-China Film Agreement, which had guaranteed 34 U.S. films would be released a year in China, hasn’t helped, said Aynne Kokas, a professor at the University of Virginia and author of “Hollywood Made in China.”
“During the first Trump administration trade war with China, there was emphasis on negotiating trade in a lot of other sectors, and motion pictures weren’t featured prominently. And during that time the China box office began growing rapidly,” Kokas said.
China’s home market for filmmaking has grown with the increase of more sophisticated technology, which has produced the market’s own blockbusters, she added.
In 2019, nine Hollywood titles generated more than $100 million at the Chinese box office, with Disney and Marvel Studio’s “Avengers: Endgame” collecting more than $600 million from the region. In the last five years, only eight American films have generated more than $100 million and only one has topped $200 million, according to data from Box Office Mojo.
In the meantime, China’s domestic film market is thriving. This year, the Chinese movie “Ne Zha 2” became the only movie in history to generate $1 billion at the box office in a single market and is now the only non-Hollywood movie to cross $2 billion at the global box office.
While the decrease in releases of Hollywood films will have a slight impact on overall global box office for some blockbuster features, industry sources told CNBC that the real economic issue for Hollywood is the currency weakening.
Box office returns come in at a higher rate internationally when the value of the dollar is lower. Of course, the trade-off is that the cost of doing business increases, they noted. Given the volatility of the stock market and the whipsawing of tariff decisions, Hollywood executives are not sure what the ultimate impact of this trade war will be on the industry. More

Frontier Airlines cut its first-quarter outlook and pulled its full-year forecast, citing a drop in demand and economic uncertainty.
The airline plans to reduce its capacity to match weaker-than-expected demand.
Frontier follows Delta Air Lines in cutting its capacity plans and pulling full-year guidance.

Frontier Airlines
Nurphoto | Nurphoto | Getty Images

Frontier Airlines joined Delta Air Lines in pulling its full-year outlook and cutting flights due to a drop in demand and an “uncertain environment.”
The budget airline also cut its first-quarter outlook. Frontier said its revenue growth likely rose 5% in the first quarter, with capacity up 5% over last year.

“Revenue growth is anticipated to be lower than expected due to weakened demand in March, resulting in fare discounting and promotions across the industry, amplified by the close-in nature of Frontier’s bookings,” Frontier said in a securities filing.
Frontier pointed to a drop in consumer confidence in March as evidence of weaker demand.

Read more CNBC airline news More

Private equity has been flocking to professional sports teams, and investors have been building up investments in Major League Baseball.
Last month, Sixth Street Partners invested in the San Francisco Giants, its first MLB investment.
MLB has been open to private equity since 2019, becoming the first league to open its gates to these investors.

A Major League Baseball logo at Angel Stadium in Anaheim, California, on May 22, 2022.
Ronald Martinez | Getty Images

Major League Baseball is increasingly drawing private equity investors as the league faces major shifts in player salaries and media rights.
Private equity has been gravitating toward professional sports, which sports-acquisitive firm Arctos Partners called “remarkably resilient assets” during times of economic uncertainty in a research note this week. MLB in particular is poised to attract new stakeholders with big changes on the horizon.

A potential MLB lockout is looming if the league puts forth a salary cap proposal during collective bargaining negotiations in late 2026. MLB is also navigating a dramatically changing media landscape. The result could be major changes to league finances — and renewed interest from investors.
“There hasn’t been a massive private equity gold rush to invest in MLB,” said Neil Barlow, private equity partner at Clifford Chance with a focus on sports and entertainment. “MLB needs to get its house in order for the league to become even more competitive for investment. Institutional investors aren’t going to commit and risk their capital when all it means is it’s helping to fund an arms race of talent.”
MLB does not have a salary cap for its players — unlike the National Football League, National Basketball Association and National Hockey League — which has led to some of the biggest contracts in sports and major pay disparities. Team owners and the league’s front office are contemplating a new economic structure, CNBC previously reported. Meanwhile, the league is also recalibrating its media rights strategy as regional sports networks continue to suffer, and ahead of the expiration of national deals in 2028.
These factors present risk, but also a lot of opportunity, said Michelle McKenna, a senior advisor in Evercore’s strategic advisory practice, who has a focus on technology, entertainment and sports. In particular, the luxury taxes associated with teams overspending on players present the biggest risk, McKenna and Barlow both said.

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McKenna called it a moment of “strategic transformation” for MLB, particularly when it comes to the decline of local media revenues and the changing distribution model. Private equity capital could “help smooth this transition period and offer strategic assistance,” McKenna said.

“Baseball remains a great asset with great sports content. They will figure this out and those that invest early will benefit,” McKenna said.
MLB has been open to private equity since 2019, becoming the first league to open its gates to these investors.
Per MLB bylaws, private equity firms can own up to 15% of individual teams, which can sell up to 30% of their equity to such investors, according to Sportico.
The rest of the major U.S. leagues have followed suit, allowing private equity to take minority stakes. Most recently, the NFL began allowing these investments, setting off a frenzy among institutional investors, as the league has some of the highest viewership and most lucrative national media rights deals.
Private equity’s capital and influence often goes toward expenses surrounding teams, such as stadium and hospitality improvements and digital enhancements. This frees up more room for payroll spending, too.
“It is also interesting to watch as baseball works to introduce new rules, products and in-stadium experiences to connect with a younger audience,” said McKenna, noting private equity’s expertise in a lot of those areas. “PE investment in sports isn’t your grandfather’s PE. These are longer-term partners with well-honed strategic advice in addition to capital.”
According to PitchBook, 18 of MLB’s 30 teams have some connection to private equity, including 10 teams that have received direct investment from firms.
Last month, Sixth Street Partners bought a stake in the San Francisco Giants, the firm’s first investment in MLB. Arctos has built up a portfolio of five direct stakes in teams.
In a release, Sixth Street said its “significant investment” in the Giants would support the franchise “in its pursuit to be champions on and off the field.” More

State Farm is making its case this week for a major rate hike for California homeowners in a hearing that could prove crucial to the insurer’s future.
The company argues it needs the additional funds to boost capital and avert an increasingly dire financial situation following the devastating Los Angeles wildfires.
State Farm General has about 20% of California’s homeowners market with nearly 3 million policies.

A State Farm logo is seen in front of a State Farm insurance office on February 03, 2025 in Larkspur, California. 
Justin Sullivan | Getty Images News | Getty Images

State Farm is making its case this week for a major rate hike for California homeowners in a hearing that could prove crucial to the insurer’s future.
The state’s largest property insurer needs approval to raise its rates on customers, and it’s applied for an emergency rate increase. The company argues it needs the additional funds to boost capital and avert an increasingly dire financial situation following the devastating Los Angeles wildfires.

State Farm General, which is the California arm of the national parent company, is presenting its case for the rate increases in front of an administrative judge in Oakland after the state insurance commissioner, Ricardo Lara, gave the insurer provisional approval for its emergency request.
The three-day hearing is scheduled to wrap up Thursday.
The situation for State Farm is precarious. An attorney for the California Department of Insurance compared it to the Titanic, saying the iceberg is in sight but there’s still time to turn the proverbial ship around.
“If we don’t, 3 million Californians are going into the water and there are not enough lifeboats,” that attorney, Nikki McKennedy, warned.

The historic wildfires that ripped through Los Angeles in January caused an estimated $250 billion to $275 billion in total damages and broader economic slowdown, according to AccuWeather, making it the costliest natural disaster on record.

State Farm General has about 20% of California’s homeowners market with nearly 3 million policies. The insurer has so far paid out over $2.75 billion on approximately 12,390 claims filed as a result of the L.A. wildfires and estimates direct losses tied to the fires to be approximately $7.6 billion, although reinsurance will lower its losses to around $612 million.
In February, the insurer requested that insurance regulators approve rate hikes on homeowners of 22%. It has since lowered its request to a 17% increase. State Farm is petitioning for an increase of 38% on renter dwelling policies, which is coverage for landlords, and 15% raise for renters.
Attorneys for State Farm General said on Tuesday that it has also agreed to seek $400 million in funds from its parent company if the rate increases are approved.
In February, S&P Global placed State Farm’s California subsidiary and its AA credit rating on a “CreditWatch Negative,” citing 5 years of weak underwriting performance and deteriorating capital capital scenarios.
Even before the devastating L.A. wildfires, insurers were facing big losses in the state due to the uptick in frequency and size of natural disasters over the past decade. Insurance Commissioner Lara, who is elected, not appointed, has been loath to approve significant rate hikes for both homeowners and auto insurance.
Meanwhile carriers pay out more in claims and expenses in the state than they collect in premiums, according to the Insurance Information Institute. As a result, many insurers have limited new business or cut back on their policies in the state.
State Farm decided to stop writing new homeowners insurance policies in California in May 2023. The following year, it announced it wouldn’t renew 72,000 policies, including 30,000 property insurance policies for homeowners and 42,000 commercial apartment policies, citing financial instability and rising risk.
During the administrative hearing this week, economist David Appel called the California market unsustainable and said it’s deteriorated dramatically. He said the state’s insurer of last resort, the FAIR plan, which many homeowners fled to after they were dropped by their insurer, has grown astronomically with insufficient capacity.
The state has crafted a “Sustainable Insurance Strategy” that creates a framework to permit insurers to use catastrophe modeling and the cost of reinsurance when formulating their rates. It also is intended to streamline the process by which those rates are approved.
Janet Ruiz of the Insurance Information Institute said the implementation of that plan this year is crucial to correcting the systemic issues that caused an insurance crisis in the first place and is an essential step toward creating a more stable marketplace in California.
Appel testified that he believes the 17% emergency increase State Farm is requesting will result in financial stability for the insurer.
The California Department of Insurance supports State Farm’s rate increase request, but the advocacy group Consumer Watchdog is advocating against the rate increase.
“The company hasn’t made the case required under the law. Their proposal isn’t even consistent. First they wanted 22%. Now they want 17%,” William Pletcher, Consumer Watchdog’s lead attorney, said in a press release.
“We’re glad the amount went down, but it still needs to be justified, and State Farm has not,” he said. More

Hispanic consumers are buying less beer because of concerns related to President Donald Trump’s immigration policy, Constellation Brands CEO Bill Newlands said.
Roughly half of Constellation’s beer sales come from Hispanic consumers.
Tariffs on aluminum are putting additional pressure on the Modelo owner.

Bottles of Corona beer, the flagship brand of Grupo Modelo are displayed in this illustration taken in Monterrey, Mexico, February 18, 2025. 
Daniel Becerril | Reuters

President Donald Trump’s tariffs aren’t the only presidential policy that is weighing on Constellation Brands.
Along with tariffs on Mexican imports, his hardline immigration stance is also hurting the company’s beer sales as Hispanic consumers in the U.S. spend less, Constellation CEO Bill Newlands told analysts on the company’s conference call on Thursday.

Roughly half of Constellation’s beer sales come from Hispanic consumers, although the company is selling more brews in part because of its marketing strategy. Constellation’s outreach to non-Hispanic beer drinkers has boosted its sales and helped Modelo Especial become the top-selling U.S. beer.
Still, Hispanic consumers remain integral to Constellation’s beer sales, which accounted for 78% of its total revenue in its fiscal fourth quarter.
“The fact is, a lot of consumers in the Hispanic community are concerned right now … Over half are concerned relative to immigration issues and how those impact [them]. A number of them are concerned about job losses in industries that have a high Latino employment base,” Newlands said.
As a result, Hispanic consumers in the U.S. have pulled back their spending on restaurants, clothing and travel, according to Newlands.
“Beer is quite a ways down the list, but it’s certainly on the list because things like social gatherings, an area where the Hispanic consumer often consumes beer, are declining today,” Newlands said.

On Wednesday, Constellation gave a weaker-than-expected outlook for its fiscal 2026 and slashed its medium-term forecast. The projections included the impact of the new tariffs. While Trump temporarily lowered the tariff rate on so-called reciprocal tariffs on every country except China on Wednesday, Constellation’s canned beer imported from Mexico is still subject to aluminum tariffs of 25%.
Constellation’s disappointing forecast was offset by the company’s better-than-expected earnings and revenue for the quarter. The company also announced on Wednesday that it is divesting its cheaper wines to focus on pricier brands.
Shares of Constellation fell less than 1% in afternoon trading on Thursday. The stock has fallen more than 23% since Trump’s election last year. More

WARREN BUFFETT must be feeling smug right now. Months before American stockmarkets started sliding from record levels in late February, as investors began to question President Donald Trump’s stewardship of the world’s largest economy, the nonagenarian billionaire was cashing out of equities. In 2024 his industrial conglomerate, Berkshire Hathaway, sold a net $134bn of stocks, including two-thirds of its $174bn stake in Apple. By the end of March the S&P 500 index of America’s biggest companies was 9% down from its peak. So was the iPhone-maker. Berkshire, meanwhile, was sitting pretty on a 10% gain—and a pile of cash to make Scrooge McDuck blanch. Converted into $100 bills, its $334bn in liquid assets would fill 1,900 king-size mattresses. The internet buzzed with memes about preternatural market timing. More

ANYONE WANT to buy a used social network? One careful Chinese owner, 170m users in America and revenue there of $12bn last year. The White House is running a chaotic auction for TikTok, a Chinese-owned app that Congress has ordered to find a non-Chinese owner or else face a ban. On April 4th, on the eve of the cut-off for the app’s sale, Donald Trump announced that he was extending the deadline by another 75 days. More

The luxury industry has lost its sparkle. A slowdown in the Chinese economy and a cost-of-living crisis in the West have led to a slump in sales of fancy frocks and posh bags. If, after a pause announced on April 9th, the high levels of tariffs threatened by Donald Trump are enacted they could throw the industry into a tailspin. Kering, a French luxury group that owns Gucci, has posted a string of profit warnings in recent quarters. At lvmh, another French luxury giant which owns Louis Vuitton, sales of fashion and leather goods have gone into decline. More