Hollywood hit hard: US media stocks slide as Trump slaps 100% tariff on foreign-made films
Streaming giant Netflix—widely known for its extensive global production footprint—was among the hardest hit, with shares dropping 4.9% in premarket trading.
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U.S. President Donald Trump on Monday announced a sweeping 100% tariff on all movies produced outside the country. The declaration, lacking in specifics, rattled Wall Street, with American media stocks taking a sharp tumble, Reuters reported.
Trump's statement did not clarify whether the new levies would apply to streaming-exclusive releases or only theatrical films. It also omitted details on how the tariffs would be calculated—whether based on production budgets or box office revenues—leaving studios and investors in a cloud of uncertainty.
Streaming giants and traditional film studios alike were quick to feel the impact. Shares of Netflix, which heavily depends on international production for its original content slate, plummeted 4.9% in premarket trading. Walt Disney Co, Warner Bros Discovery, and Comcast (owner of Universal Pictures) also saw their stock prices drop between 0.8% and 2.7%.
"The problem is that pretty much all the studios are moving tons of production overseas to reduce production costs and leverage foreign credits," said Rosenblatt Securities analyst Barton Crockett in the report.
The financial toll could be significant. In 2023 alone, American films generated $22.6 billion in exports and posted a trade surplus of $15.3 billion, according to data from the American Motion Picture and Television Industry.
Analysts say the tariff could force a dramatic reshuffling of production pipelines. For years, Hollywood studios have increasingly opted to film abroad in countries like the United Kingdom, where favourable tax incentives and lower costs have made them attractive destinations. Notably, none of the ten films nominated for Best Picture at this year's Oscars were shot in Los Angeles.
A forced repatriation of production could spike budgets and strain an industry already operating on thin margins. Today’s film production process is deeply globalized—often involving principal shooting in Europe, post-production in Canada, and visual effects from studios in Southeast Asia.
According to a survey by production analytics firm ProdPro, studio executives’ top five preferred filming locations for 2025–2026 were all situated outside the U.S., underscoring the industry’s deep reliance on global infrastructure.
