Shares of Disney, Netflix and Other Studios Fall After Trump Threatens 100% Tariff on Movies ‘Produced in Foreign Lands’

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On Monday, stocks from entertainment firms such as Disney, Netflix, Warner Bros. Discovery, and Paramount Global experienced a downturn, as investors contemplated the possible impact of President Trump’s proposed 100% import tax on movies produced abroad.

At the start of U.S. stock market trading on Monday, Netflix’s shares fell by 3.3%, Disney’s dropped by 2.4%, Warner Bros. Discovery (WBD) declined by 4.2%, and Paramount experienced a decrease of 2.2%. These drops were more significant than the declines in broader market indices such as the S&P 500 (-0.70%) and the Nasdaq Composite (-0.82%).

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On Monday’s U.S. stock market opening, Netflix’s shares fell by 3.3%, Disney saw a 2.4% decrease, Warner Bros. Discovery (WBD) dropped by 4.2%, and Paramount’s shares decreased by 2.2%. These declines were steeper than the drops in broader market indices like the S&P 500 (-0.70%) and the Nasdaq Composite (-0.82%).

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As U.S. stock market trading began on Monday, Netflix’s shares fell by 3.3%, Disney saw a fall of 2.4%, Warner Bros. Discovery (WBD) dropped by 4.2%, and Paramount’s shares decreased by 2.2%. These declines were more pronounced than the drops in broader market indices such as the S&P 500 (-0.70%) and the Nasdaq Composite (-0.82%).

On a Sunday, the current U.S. president posted on his social media platform Truth Social, stating that foreign countries are enticing American filmmakers and studios to leave the United States with various incentives, which he described as a “coordinated effort” by these nations that poses a significant “National Security risk.” Trump announced his intention to direct the Commerce Department and the U.S. Trade Representative to promptly initiate a 100% Tariff on any films entering the country that were produced overseas.

ALSO CHECK OUT: Stun in the Film World as Trump Proposes 100% Taxes on Movies Made Abroad: ‘This is Crazy!’

Initially when Trump implemented his broad “reciprocal” tariff plan in April, experts predicted Hollywood wouldn’t be affected as these tariffs traditionally targeted physical goods, not intellectual property. However, it now appears that Trump is considering expanding his trade conflict, potentially increasing costs for the movie industry significantly.

Currently, there’s a greater number of queries than solutions regarding Trump’s proposed movie tariffs. For instance, the film “Mission: Impossible – The Final Reckoning,” produced by Paramount Pictures and starring Tom Cruise, was predominantly filmed in the U.K. It remains uncertain if this movie, set to release on May 23rd, would fall under new taxes or, in general terms, how any such tariffs would be calculated.

Numerous films are filmed and manufactured across various countries such as the U.K., France, Germany, Hungary, and Canada. At present, it remains uncertain how the Trump administration plans to categorize a film as foreign-made. Additionally, it’s unclear whether the Trump administration would consider extending taxes to television productions.

It’s noteworthy that Mel Gibson, a renowned actor who serves as one of the three special ambassadors for Hollywood appointed by Trump (with Sylvester Stallone and Jon Voight), is at present arranging to film his “Passion of the Christ” sequel in Italy.

Based on data from the Motion Picture Association, it’s reported that the U.S. film industry in 2023 exported movies worth approximately $22.6 billion and recorded a total trade surplus of $15.3 billion. In other words, Hollywood managed to maintain a profitable relationship with every significant international market, as per the MPA’s findings.

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2025-05-05 16:46