U.S. President Donald Trump’s threat on Monday to impose a 100% tariff on all foreign-produced movies poses a direct risk to South Korea’s cultural export economy, Netflix partnerships and digital trade alignment with Washington, especially with a snap presidential election less than a month away.

Trump made the announcement on Truth Social, claiming the U.S. film industry was “dying a very fast death” due to subsidies provided by other governments to support their own movie sectors. He accused unnamed countries of using film as a vehicle for propaganda and declared that the U.S. would impose the new tariffs on national security grounds.