It came as a shock to all film directors around the world when US President Donald Trump issued a 100% tariff on any film produced outside the United States (US) on Sunday.
However, the action he said was to save the Hollywood film industry, instead of eating itself when the shares of the giant US studios that were first slumped.
Monday morning saw the shares of film companies in Hollywood themselves plummet, such as Disney, Netflix and Warner Bros - all falling more than 1% overnight.
Perhaps this time Trump made a mistake in making tariffs because this decision did not succeed in raising the glory of Hollywood, and investors were not at all excited and continued to walk away from the film industry.
Analysts have warned that these tariffs could backfire and cause fewer films to be produced, a backlash from abroad, and billions of dollars in losses in global trade.
Netflix, which has 75% of its content produced abroad, is among the companies most exposed to risk.
Meanwhile, California's film industry, already reeling from a 22% drop in filming this year, could now face a full-blown crisis.
Supporters of the "Stay in LA" campaign likened the decline to the collapse of Detroit's auto industry, and urged the state government to increase tax credits before Hollywood goes completely dark.
