U.S. media stocks fell Monday after President Trump announced plans for a 100% tariff on films produced outside the United States. The move, aimed at encouraging domestic production, could raise costs for Hollywood studios that rely on international filming and post-production.
Details of the tariff policy remain unclear, including how it would apply to streaming content and theatrical releases.
Netflix shares dropped nearly 5% amid concerns about its global production model. Disney, Warner Bros., and Comcast also saw stock declines between 0.8% and 2.7%.
Analysts warn the policy could reduce content production, increase budgets, and trigger foreign retaliation. In 2023, American films generated $22.6 billion in exports. Most upcoming major productions were already planned for overseas locations.
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