Hollywood Shaken by Trump’s Call for 100% Tariff on Overseas-Made Films

Investors in Hollywood’s biggest studios and streaming platforms were rattled Monday after former President Donald Trump announced plans for a 100% tariff on films produced outside the U.S. The surprise proposal triggered a brief dip in share prices for several major entertainment companies before stocks began to recover.

Here’s how shares performed at their lowest point early Monday:

• Netflix dropped by up to 4%
• Disney slid as much as 3%
• Warner Bros. Discovery fell around 5%
• Paramount dipped 2%
• Comcast (Universal) was down about 1%

Trump made the announcement on Truth Social late Sunday, calling foreign tax breaks for movie production a “national security threat.” He claimed he would authorize the Commerce Department to impose steep duties on any foreign-made films being distributed in the U.S.

However, the details remain murky. It’s unclear how the tariff would be applied, who would be responsible for paying it, or which types of productions would be affected.

Why It Matters

Hollywood studios frequently film overseas to save on costs or capture authentic locations. Many productions are a mix of domestic and international shoots, with studios operating satellite facilities around the globe.

According to Wedbush analyst Alicia Reese, the proposal introduces significant uncertainty. She noted that studios may be forced to lobby the government to create reasonable exemptions—especially for films that need international settings.

Reese estimates that about 75% of Netflix’s content is produced outside the U.S., including both foreign-language shows and English-language titles filmed in countries like Canada and the U.K.

“Most of Netflix’s content is made by third-party studios, so the company doesn’t control where it’s filmed,” Reese explained.

Can a Tariff Even Work?

There’s also skepticism about how enforceable such a tariff would be. In 2018, when Trump imposed a 25% tariff on Canadian imports, industry experts pointed out that digital productions don’t involve tangible goods being shipped. Final content is usually delivered via online transfers or digital storage devices—not the kind of physical imports tariffs are typically designed to regulate.

“Tariffs usually apply to ‘goods,’ so charging a duty on DVDs is doable,” Reese said. “But enforcing a tariff on digital content or intellectual property is a much different challenge.”

Open Questions

Trump’s post has opened a floodgate of unanswered questions:

• Would the tariff hit TV shows as well as movies?
• Will it apply to already completed projects?
• What stage of production would be subject to the fee—shooting, editing, or distribution?

And perhaps most importantly, what are the international consequences? With foreign box offices making up a large share of Hollywood revenue, there’s fear that other countries could retaliate. China, for example, has already limited access to Hollywood releases. More markets could follow suit if tensions rise.

As the entertainment industry awaits clarification, one thing is certain: the proposal has introduced a fresh layer of uncertainty just as Hollywood is trying to rebound from strikes, budget cuts, and shifting viewing habits.