Trump Proposes 100% Tariff on Foreign Films, Media Stocks Plunge

NEW YORK, N.Y. — American media stocks took a significant hit on Monday following President Donald Trump‘s announcement of a proposed 100% tariff on all movies produced outside the United States. The tariffs could severely increase production costs for Hollywood studios and disrupt the global entertainment industry.

The announcement, made during a press briefing, lacked specific details on whether the tariffs would apply to films on streaming platforms, theatrical releases, or how they would be assessed—whether based on production costs or box office revenues.

Shares of streaming giant Netflix, which relies heavily on international production, fell by 4.9% in premarket trading, leading a decline in media stocks. Disney, Warner Bros. Discovery, and Comcast, the parent company of Universal, saw their stock prices dip between 0.8% and 2.7%. Additionally, theater companies like Cinemark and IMAX reported losses of 3.5% and 5.9%, respectively, while AMC Entertainment slipped by 0.4%.

Over the years, many studios have shifted production overseas for better tax benefits and lower labor costs. Los Angeles remains a historic hub for cinema, but most Oscar nominees this year were filmed outside the U.S. A recent survey indicated that major studios prefer international locations for production in 2025 and 2026.

Barton Crockett, an analyst at Rosenblatt Securities, expressed concern about the implications of these tariffs. “Raising the cost to produce movies could lead studios to make less content,” he said. “There’s also a risk of retaliatory tariffs against American content overseas.”

American films constituted a major export, generating $22.6 billion and maintaining a trade surplus of $15.3 billion in 2023, according to the Motion Picture Association. Increased costs could strain an industry that is already facing challenges from cable cord-cutting.

Trump’s decision comes at a time when the global film industry has been grappling with his previous tariffs aimed at various imports. Some industry leaders from Australia and New Zealand have voiced their concerns over how these tariffs could affect local production.

Matthew Stillman, CEO of Stillking Films in Prague, remarked, “We are awaiting clarity about how the tariff is calculated… all of which have implications and complications.” The industry continues to wait for specifics on this announcement amidst growing concerns about its broader economic impact.