Media stocks underwent a significant decline on Monday after U.S. President Donald Trump declared a broad 100% tariff on every foreign-produced film, arguing it was essential to restore the American film business.
President Trump stated in a Truth Social post, “The movie industry in America is DYING a very fast death,” attributing foreign incentives for attracting U.S. foreign filmmakers. “WE WANT MOVIES MADE IN AMERICA AGAIN!”
Reaction of Market
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Netflix Inc. dropped over 4% to an intraday low of $1,107.01, before recovering to trade 1.17% lower at $1,143 as of 12:19 p.m. ET.
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Paramount Global fell 3.1% early and is now trading 0.87% lower at $11.33, compared to its previous close of $11.43.
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Walt Disney Co. shares dipped 3.1% to $89.61, but rebounded slightly to $92.61, up 0.12%.
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Fox Corporation stock declined 3.6% to $47.66 before stabilizing at $49.42, down 0.04%.
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Warner Bros. Discovery saw the steepest drop, tumbling 5.3% to $8.08, and currently trades 0.41% lower at $8.49.
Effect on Industry
Effective immediately, Trump’s orders authorize the U.S. Commerce Department and the U.S. Trade Representative to start imposing 100 percent tariffs on every incoming film. The action is in line with his wider goal of shielding local studios from what he sees as unjust foreign rivalry.
Investor sentiment has been rather negative even though Trump characterizes the policy as defensive. Analysts caution that, especially for streaming services like Netflix that depend greatly on worldwide content pipelines, the tariffs might raise production costs, undermine international cooperation, and restrict content availability.
Trump claims that outside influences are “devastating” Hollywood; critics contend that the tariff strategy may return insults by lowering consumer choice and sparking trade retribution.
The path ahead for the entertainment industry is unpredictable. Whether this policy change brings U.S. It remains to be seen whether movie production interferes with the worldwide entertainment system; Wall Street has obviously reacted negatively.
