American media stocks fell on Monday, May 5, after former President Donald Trump proposed a 100% tariff on all movies produced outside the United States—a move that could dramatically reshape Hollywood’s global operations and disrupt the wider entertainment industry.
The announcement, light on specifics, has raised uncertainty over how the tariffs would be applied—whether to theatrical releases, streaming content, or based on production costs or box office revenue.
In 2023, U.S. films generated $22.6 billion in exports and contributed to a $15.3 billion trade surplus, according to the American Motion Picture and Television Industry. Yet Hollywood’s reliance on international production has grown. A recent survey by ProdPro found that all of the top five preferred production locations for studio executives planning projects in 2025–2026 were outside the U.S., largely due to tax breaks and lower costs.
Analysts told Reuters that streaming platforms—especially Netflix—could be hit hardest. Netflix’s global production model, which emphasizes localized and international content, may face disruption. Its stock fell 4.9% in premarket trading, leading a broader decline in the media sector.
Though Los Angeles is still seen as the epicenter of the film industry, none of this year’s top ten Oscar contenders were filmed in the city, reflecting a major shift in production overseas. Today, studios operate through international supply chains, often filming in Europe, editing in Canada, and outsourcing visual effects to Southeast Asia. Bringing production back to the U.S. could significantly raise costs.
Shares of major entertainment companies—including Walt Disney Co., Warner Bros. Discovery, and Comcast (owner of Universal Pictures)—also declined on Monday, falling between 0.8% and 2.7% amid investor concerns about the financial fallout from the proposed tariffs.
