Why Did Netflix Drop 3.84%? Tariffs, Jobs Data, Supply Chain Woes

On April 7, 2025, Netflix's stock experienced a 3.84% drop in pre-market trading, reflecting investor concerns and market volatility.

Netflix's recent stock performance has been influenced by several key factors. The U.S. government's decision to impose "reciprocal tariffs" on Chinese imports has created uncertainty in the global market, potentially affecting Netflix's international operations and content distribution. Additionally, the U.S. non-farm payroll report for March showed a higher-than-expected increase in employment, which could lead to higher interest rates and increased borrowing costs for companies like Netflix.

Furthermore, the U.S. government's decision to temporarily suspend the import qualifications of six American companies' products into China could impact Netflix's supply chain and operational costs. The suspension of import qualifications for high-quality barley and poultry bone meal from certain American companies may also affect Netflix's content production and distribution strategies in China.