Shares in major US streaming platforms and film studios fell sharply on Monday following President Trump’s surprise announcement that he plans to introduce 100% tariffs on films produced abroad, reigniting concerns over the disruptive reach of his trade policies.
Netflix shares slid 1.7%, Amazon was down 1.5%, and both Warner Bros Discovery and Paramount Global dropped more than 1% in early afternoon trading. The Nasdaq index, heavily weighted toward media and tech stocks, was off 0.6% as investors weighed the implications of a tariff that could drastically reshape the economics of Hollywood.
The president’s Truth Social post said he had ordered the Commerce Department and US Trade Representative to begin implementing the new levy, but provided no details on how it would be applied — including whether it would target streaming content, theatrical releases, or if the tariff would be calculated based on production costs or revenue.
A significant portion of US-produced entertainment is filmed abroad to take advantage of tax breaks, lower labour costs, and specialised post-production hubs. Netflix, in particular, relies heavily on an international production network to cater to its global subscriber base.
“The problem is that pretty much all the studios are moving tons of production overseas to reduce production costs,” said Barton Crockett, media analyst at Rosenblatt Securities. “Raising the cost to produce movies could lead studios to make less content.”
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