Netflix And Other Streaming Stocks Slide As Trump's Proposed Tariffs On Foreign Films Sparks Concern

The streaming giant Netflix, Inc NFLX stock traded lower on Monday. President Donald Trump's proposed 100% tariff on foreign-produced movies raised alarm among investors regarding streaming stocks.

"This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda," Trump said on Truth Social.

Economist Peter Schiff criticized the move, citing potential subscriber losses for companies like Netflix.

Walt Disney Co DIS, Warner Bros. Discovery, Inc WBD, and Paramount Global PARA, Amazon Prime video parent Amazon.com, Inc AMZN stocks are trading lower on Monday.

Also Read: Netflix Wants To Be The Next $1 Trillion Company, Analyst Highlights Growth Path

In April, China promised to restrict Hollywood film imports in retaliation for tariff increases on Chinese goods. In 2024, U.S. studios earned $600 million from China.

Disney's Marvel movie "Thunderbolts" secured permission to debut in China on April 30, but the fate of other summer blockbusters remains uncertain.

Movie and TV production noted an exodus from Hollywood to locations with tax incentives, prompting media companies like Netflix and Disney to film overseas in countries like Canada and Britain.

Global governments increased credits and cash rebates to attract production and capture a greater share of the $248 billion that Ampere Analysis expects to be spent globally in 2025 to produce content, Reuters reports.

Australia and New Zealand promised to extend solidarity with their local industries. Disney Marvel has filmed many superhero movies in Australia. The Lord of the Rings was shot in New Zealand.

Film and high-end TV production in the U.K. was worth 5.6 billion pounds ($7.45 billion) in 2024, a 31% jump in 2023, Reuters cited the British Film Institute.

It is not clear to which movies the tariffs would apply or whether it would include streaming services. According to Reuters, Hollywood executives were trying to find out the details on Sunday.

Price Action: NFLX stock is down by 5.45% at $1,093.41 premarket at the last check on Monday.

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