Hollywood is the latest industry to get skittish about Trump's tariffs

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Good morning! Some of the world's elite gathered for the Met Gala last night. (My invite must have got lost in the mail.) Here's a rundown on how the event went. We also made our picks for who was the best-dressed — and who missed the mark.

In today's big story, President Donald Trump has targeted movies made outside the US with his latest tariffs, but no one really knows what it means.

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What's on deck

Markets: Warren Buffett's retirement announcement was a downer for Berkshire Hathaway's stock.

Tech: Former Meta employees shared what it was like to be laid off as "low performers."

Business: Austin is the first battleground for Tesla and Waymo's driverless taxis to face off.

But first, lights! Cameras! Tariffs!

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The big story

Make America(n Movies) Great Again

EXT: PORT OF NEW YORK AND NEW JERSEY - DAY

A walking film reel departs from a European container ship and approaches a customs officer awaiting exiting passengers.

FILM REEL

Hello! I'm the new summer blockbuster, and I'm ready for the big screen!

CUSTOMS AGENT

Not until you pay up on these tariffs!

My first attempt at screenwriting might not make sense, but the same could be said for President Donald Trump's latest tariff announcement focused on Hollywood.

On Sunday, the president said he'd save Hollywood from "dying a very fast death" due to productions shifting out of the country by imposing a 100% tariff on movies made outside the US.

The problem, as Business Insider's Peter Kafka points out in this piece, is that no one quite understands what putting tariffs on films made outside the US means or how it would work.

Trump isn't wrong that tax incentives and labor costs have led Hollywood to look overseas. But how would one enforce these tariffs? What level of work done on a movie outside the US would trigger the tariffs?

And, as my short film above illustrates, how do you even tariff something that doesn't physically arrive here via cargo ships or planes?

(You can read more about Peter's theories here. Hint: Tax breaks and other financial incentives.)

Trump said Monday afternoon he was "not looking to hurt the industry; I'm looking to help."

What's not debatable was the industry's initial reaction. Shares of top streamers and movie companies like Netflix and Walt Disney took a dip Monday morning.

Maybe the best way to understand these latest tariffs is to look at them more holistically.

At least, that was the pitch from Treasury Secretary Scott Bessent on Monday at the Milken conference, where BI's Bradley Saacks was in attendance.

In front of a crowd of the world's biggest and most powerful asset managers, Bessent made the case that the administration's overall trade plans were part of a three-pronged approach. Tariffs, tax cuts, and deregulation work together "to solidify our position as the home of global capital," Bessent told the group.

The framing was meant to help investors digest the volatile first 100 days of Trump's presidency, thanks largely to his focus on tariffs. Carlyle CEO Harvey Schwartz and Franklin Templeton CEO Jenny Johnson, who followed Bessent's speech, said tying together tariffs with deregulation and tax cuts was a good way to articulate Trump's broader plan.

Whether the rest of the attendees agreed remains to be seen.

3 things in markets

1. It's time to start rooting for the rich. The wealthy don't like higher prices, but they're spending through it. Their buying habits are holding up the consumer-driven US economy — but if they start to cut back, everyone else will feel the contraction.

2. Berkshire Hathaway's stock tumbles on Buffett news. The conglomerate's stock dropped as much as 7% on Monday after Warren Buffett announced his retirement over the weekend. Shareholders are wondering what Berkshire will look like without Buffett at the helm.

3. Elite colleges are rushing to the bond market. MIT plans to sell $750 million worth of taxable bonds, according to May 2 preliminary offering documents. It joins a list of elite colleges that have tapped the bond market as the Trump administration threatens to slash federal funding for universities.

3 things in tech

1. Meta's "low performers" on those brutal layoffs. Eight former employees told BI what it was like to be caught in the company's sweeping job cuts — and the stigma that comes with being labeled a "low performer."

2. Amazon rewards consistently high performers. The retail giant is revamping its pay structure to better recognize and reward long-term high performers, per internal guidelines obtained by BI. The compensation overhaul reflects a wider trend happening across Big Tech.

3. Microsoft's controversial management approach. The software giant is putting some ousted low performers on a two-year rehiring ban and identifies these job cuts as "good attrition," according to an internal document viewed by BI. It's similar to hardcore performance-management strategies used at Meta and Amazon.

3 things in business

1. Tesla vs. Waymo. The two companies' driverless taxis will go head-to-head in Austin in June, when Tesla launches its services in the city. Here's how the robotaxis compare on cost, training, business strategy, and more.

2. OpenAI says its nonprofit will remain in control after all. In September, the AI giant announced it was moving to a for-profit business model. Read the letter CEO Sam Altman sent to employees explaining the decision to reverse course.

3. Google wants the star power. The tech company quietly launched a film and TV production initiative called 100 Zeros, BI has learned. Google hopes 100 Zeros will boost its image among Gen Z, but it plans to skip out on YouTube as a distributor.

In other news

• Want to invest in Mira Murati's new AI startup? You'll have to pony up at least $50 million.
• Marc Andreessen thinks AI can do every job in the world — except his.
• Palantir praises DOGE cuts and compares the US government to 'fine-marbled wagyu.'
• Jon Voight says he's sent Trump a 'comprehensive plan' to 'make Hollywood great again.'
• What airlines are saying to people who don't have a Real ID yet.
• Warren Buffett's best and worst investments.
• How Salesforce is using AI career coaches to hire employees internally.
• Skims boss says prioritizing work-life balance is not a recipe for success — it's a red flag.
• My career has taken me to Goldman Sachs, JPMorgan, and Google. Here's what brought me back to Wall Street.
• Oil prices have crashed to four-year lows. That means cheaper gas for Americans hitting the roads this summer.
• Nvidia CEO says 'San Francisco is back' — and it's thanks to the AI gold rush.

What's happening today

• Federal Open Market Committee meeting.
• Treasury Secretary Scott Bessent testifies at House Appropriations Committee hearing.

• President Trump hosts Canadian Prime Minister Mark Carney at the White House.

  The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.