Trump's 100% Tariff Threat Sinks Media Stocks 4.9%

Donald Trump, the of the United States, has announced a threat to impose a 100% tariff on all foreign-made films, which has caused a significant drop in the stock prices of American media companies. This move could substantially increase the costs for Hollywood studios and shake the global entertainment industry.

The announcement lacks specific details, leaving unclear whether the tariff would apply to films distributed on streaming platforms or those shown in theaters. Additionally, it is unclear whether the tariff would be calculated based on production costs or box office revenue.

Analysts have highlighted that streaming pioneer netflix is particularly at risk due to its reliance on a global production network to create content for international audiences. The company's stock price dropped 4.9% in pre-market trading, leading the decline in media stocks.

Despite Los Angeles being long celebrated as the film capital of the world, many studios have shifted production overseas to take advantage of attractive tax incentives and lower costs. This year, none of the 10 films nominated for the Best Picture Oscar were shot in Los Angeles.

For an industry that now relies heavily on global supply chains—filming in Europe, post-production in Canada, and visual effects teams spread across Southeast Asia—being forced to return to the U.S. could drive up production budgets.

Companies such as walt disney, warner bros. Discovery, and comcast, the parent company of Universal Pictures, saw their stock prices fall between 0.8% and 2.7%.

Rosenblatt Securities analyst Barton Crockett noted, "The issue is that almost all studios have been moving a significant amount of production overseas to lower costs and take advantage of foreign tax credits."

"Increasing the cost of film production could lead to a reduction in the amount of content produced by studios. Additionally, there is a risk of retaliatory tariffs on U.S. content from foreign countries."

According to the Motion Picture Association, the U.S. film industry exported $226 billion worth of films in 2023, resulting in a trade surplus of $153 billion. A survey conducted by ProdPro among studio executives on their preferred production locations for 2025-2026 showed that the top five choices were all outside the U.S.