Disney on the Edge: How Trump’s Tariffs Could Send Bob Iger into Crisis Mode
The world of business is always full of unexpected twists, but some of the recent developments surrounding The Walt Disney Company have left many in the industry wondering about the future. With Disney’s ongoing expansion and its deep connections to both the entertainment and global markets, any shifts in the political landscape have a profound effect.
As the United States faces a new round of tariffs under the Trump administration, there are mounting concerns that these changes could hit Disney harder than most. The potential impact on their global operations, supply chains, and future investments is becoming an increasingly urgent conversation behind closed doors.
Related: Disney/ABC Under Investigation After Accusations of “DEI Discrimination”
In the latest turn of events, Bob Iger, Disney’s long-time CEO, has expressed his concerns in a way that’s anything but typical. The normally composed leader of one of the world’s largest entertainment companies, Iger’s response to the new tariffs is sending waves through the Disney organization. While Iger is known for his calm demeanor in public, insiders are now reporting that behind closed doors, he’s anything but at ease.
According to sources, Iger has openly voiced his worries about the looming financial impact of President Trump’s new tariffs, which are poised to affect Disney’s international business ventures. The scale of the problem could be much larger than just a bump in the road, especially considering the diverse markets Disney operates in.
The Unfiltered View of Bob Iger
According to a report from TheWrap, Iger’s behind-the-scenes reaction is anything but measured. He reportedly went as far as to voice his concerns at an editorial meeting at ABC News, expressing his frustration and worries about how tariffs would shake up Disney’s global footprint. The meeting, which was said to have taken place unexpectedly, revealed a side of Iger that many hadn’t seen before.
The executive, according to a report from Oliver Darcy’s Status newsletter, expressed concern that relocating overseas manufacturing to the U.S. “speedily” is impossible, and also indicated that most people “don’t really understand how tariffs work.” Anonymous staffers who were present at the meeting told Darcy that the latter comment appeared to be his push for ABC News to connect the dots for readers and viewers.
As discussion of the tariffs and the ABC newsroom’s coverage strategy continued, staffers described Iger as continuously jumping into the conversation to share his thoughts and offer more of what Darcy said were “unfiltered views.” He expressed concern for Disney’s cruise line — particularly two new ships that rely on steel for their construction and how the company may have to scale back spending if costs rise too high.
Related: Bob Iger “Obsessed” With Avoiding Another Bob Chapek Mistake
Iger’s unfiltered comments are in sharp contrast to the calm and collected public persona he usually maintains, but they reflect just how deeply these tariffs could affect Disney’s bottom line. From rising production costs for new projects to logistical challenges in Disney’s extensive global supply chain, the company may face a significant uphill battle in the coming months.
Tariffs and the Disney Business Model
Disney’s vast global empire relies on a network of manufacturers, suppliers, and partners located in various parts of the world. With the announcement of Trump’s new tariffs, Disney, like many other global companies, faces rising costs across its international operations. These new tariffs, which are set to impact more than 180 countries, could alter the way Disney does business, particularly with its merchandise and manufacturing.
The biggest concern for Disney, according to insiders, is the potential disruption to the company’s cruise line business. The of two new ships, which are currently in the works, depends heavily on steel — a material that will now be subject to higher tariffs. If costs continue to rise due to these new duties, Disney may be forced to scale back or delay some of its planned expansions.
As the company has thousands of employees overseas, relocating manufacturing back to the United States is a complex and costly process. Iger’s remarks, which include a mention of the difficulty in moving manufacturing stateside “speedily,” point to the challenges Disney could face in meeting domestic production needs while keeping prices competitive.
Looking Ahead: Will Disney’s Response be Enough?
With the tariffs officially set to go into effect on Saturday, April 5, the stakes for Disney have never been higher. The stock market has already felt the initial shock, with shares falling in the days since the announcement. While Disney is certainly no stranger to challenges, this new set of tariffs presents a unique set of problems.
With major international investments at risk, the company’s ability to adapt to these changes will determine how well it rides out the storm.
As Disney fans, we’ve come to expect big things from the Mouse House. But with political and economic forces seemingly stacked against them, the future of Disney’s expansion could look quite different from what we’ve seen in the past. Whether or not Bob Iger and the rest of Disney’s leadership can maneuver these choppy waters will likely determine what the company looks like in the years to come.
Do you think Bob Iger has a right to be concerned about the new tariffs? Do you think they will significantly impact Disney’s business? Share your thoughts with us in the comments!
