Media and entertainment stocks took a hit in premarket trading on Monday after President Donald Trump announced plans to impose a 100% tariff on movies produced outside the United States. This move marks an escalation of his broader trade agenda, now extending to the film industry.
Trump shared his concerns in a post on Truth Social, stating,
“The Movie Industry in America is DYING a very fast death.”
He pointed to foreign countries offering various incentives to lure filmmakers and studios away from the U.S., which he claimed has resulted in significant damage to Hollywood and other areas across the nation.
Trump described the situation as a “National Security threat” and accused foreign productions of serving as “messaging and propaganda.” He added that he had authorized the Department of Commerce and the U.S. Trade Representative to immediately begin the process of instituting the 100% tariff on all movies produced abroad and entering the U.S. market.
He added,
“WE WANT MOVIES MADE IN AMERICA, AGAIN!”
The announcement had an immediate impact on stock prices within the media and entertainment sector. Netflix (NASDAQ: NFLX) fell 4.64%, while Lions Gate Entertainment declined 8.5%. Warner Bros. Discovery (NASDAQ: WBD) slid 2.22%, Walt Disney (NYSE: DIS) lost 2.61%, Imax (NYSE: IMAX) dropped 1.49%, and AMC Entertainment (NYSE: AMC) edged down by 0.04%.
Commerce Secretary Howard Lutnick responded to Trump’s Truth Social post via X, saying,
“We’re on it.”
At this point, the full scope of the proposed tariffs remains unclear, including whether they will apply to films distributed via streaming platforms or how the tariffs would be calculated.
Mary Lee is a freelance writer and journalist based in Toronto, Canada. She holds an M.S. degree in business and economic journalism from Columbia University’s Graduate School of Journalism in New York and a certificate in digital marketing from the University of Toronto. Read Full Bio
