Shares of US streamers and production companies fell Monday after Donald Trump said he would introduce 100% tariffs on films made overseas.
Trump’s announcement about his true social platform has revived concerns about the US president’s trade policy and its impact on the global economy.
Netflix stocks fell 1.7% by early afternoon on Wall Street, Amazon fell 1.5%, while Warner Bros Discovery and Paramount fell 1.1% and 1% respectively. The high-tech NASDAQ index lost 0.6%.
The president said he had already ordered the Commerce Department and US trade representatives to begin enacting such tariffs, but his post did not detail whether taxation applies to films on streaming platforms, whether it was a theatrical release, or whether the tariffs were based on production costs or box office revenue.
After the newsletter promotion
Paolo Pescatore, media analyst at PP Foresight, said: “Everyone is working to understand the whole process, so I don’t feel that anything will happen in the short term. Inevitably the cost is handed over to the consumer.”
Tariffs in particular could be a hit on Netflix, as US streaming companies rely on global production networks to produce content for international audiences. Movie operators have fallen by 2% and 3% respectively for cinemas and IMAX.
Despite its historic Los Angeles hub, Hollywood Studios has been moving production overseas for many years, moving to locations like the UK, Canada and Australia, taking advantage of generous tax credits and lower labor costs. Hollywood in 2023 secured higher wages and wider benefits for writers and actors.
Most of the Oscar’s Best Picture nominations this year were filmed outside the US, and a survey by studio executives Prodpro asking about their preferred production locations for 2025-2026 showed that the top five options are overseas.
Forcesing the US return to soil will boost production budgets and disrupt the global production supply chain, including filming in Europe, post-production in Canada and visual effects work in Southeast Asia.
“The problem is that almost every studio is driving mass production overseas to reduce production costs,” said Burton Crockett, a Rosenblatt Securities Analyst. “Increasing the costs of making a film will help the studio create less content.”
The British media coalition Bectu has urged the government to protect the country’s “critical” film sector, warning that tens of thousands of freelance jobs are on the line.
