Trump's Movie Tariffs Push Media Stocks Lower

On Monday, the entertainment industry expressed a mix of concern and confusion following President Donald Trump’s Sunday announcement of a proposed 100% tariff on all movies produced outside the U.S., with little clarity on how such a policy would be implemented. 

This move is part of Trump’s broader strategy of imposing tariffs and threats across global industries to stimulate U.S. industrial activity.

Trump’s trade policies, blending tariffs, regulatory rollbacks, and investigations that could lead to further import taxes, have undermined consumer and business confidence due to their unclear execution, leaving many sectors uncertain. Applying tariffs to the film industry could prove even more complex than in the highly integrated North American automotive sector.

The announcement triggered a broad decline in media company stocks on Monday, driven by fears that the tariffs would significantly increase costs for Hollywood studios and disrupt the global entertainment market. Netflix (NFLX.O), which heavily relies on international production for its global audience, saw its shares drop approximately 1.5% in afternoon trading. 

Shares of Disney (DIS.N), Warner Bros Discovery (WBD.O), and Comcast (CMCSA.O), the parent of Universal, stabilized after early declines, while theater operators like Cinemark (CNK.N) and IMAX (IMAX.N) fell 2.1% and 1.6%, respectively, though they recovered some losses. IMAX declined to comment, and other companies did not respond to inquiries.

Hollywood has been advocating for tax incentives to increase production in Los Angeles, the traditional heart of the film industry. Over the years, studios have shifted filming to countries like the UK, Canada, and Australia to capitalize on substantial tax credits and lower labor costs. A ProdPro survey of studio executives for 2025–2026 production locations revealed that the top five preferred destinations were all outside the U.S., and most of this year’s Oscar best picture nominees were filmed abroad.