How streaming giants like Netflix, Disney, and Paramount reacted to Trump's 100% tariff announcement on foreign films
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Trump's Tariff Push Shakes Streaming Industry
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Market Capitalization Loss Tops $20 Billion
Tariff Enforcement Raises Complex Questions
Netflix's Global Footprint Now a Risk Factor
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What did President Trump announce about foreign-produced films?
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Streaming giant Netflix witnessed a staggering market setback on Monday as shares plunged sharply in the wake of U.S. President Donald Trump's sweeping announcement to impose 100% tariffs on foreign-produced films.The move, framed by the administration as a national security measure, triggered ripples across the broader entertainment sector and cast uncertainty over the future of global media distribution.In a Sunday evening statement, President Trump declared that 'any and all Movies coming into our Country that are produced in Foreign Lands' would now be subjected to a 100% tariff, citing what he termed as their risk to 'national cohesion and security', as quoted in a report by Forbes.The abrupt announcement immediately impacted investor confidence, with Netflix shares falling 4%, touching $1,113 — marking the steepest one-day decline for the company since April.Other media conglomerates also took a hit, with Warner Bros. Discovery down 3%, Disney and Paramount Global losing 2% each, and Comcast (parent of Universal Pictures) slipping 1%, far outpacing the modest decline in the S&P 500 index, as mentioned in a report by Forbes.The most striking number from the day's fallout was the $20.4 billion loss in Netflix's market capitalization, putting its single-day decline on par with the entire valuation of Warner Bros. Discovery.Analysts expressed concerns about how deeply the newly announced Netflix tariffs could erode earnings, especially considering the company's heavy dependence on international productions.Unlike physical goods that are taxed at ports of entry, films and streaming content operate within a service-based model, often involving international financing, co-productions, and digital transmission across borders.Experts warned that the proposed movie tariffs would be complicated to enforce.'Is it limited to films alone, or does it include streaming series, visual effects, or international studio partnerships?' questioned Henning Molfenter, a veteran producer with credits on The Pianist and Captain America: Civil War, speaking to entertainment media.According to Ampere Analysis, more than 51% of Netflix's 2024 content expenditure was allocated to productions outside North America.Moreover, approximately 70% of its paid subscribers are located outside the U.S. and Canada.Global hits like Squid Game (South Korea) and Bridgerton (UK) have played a crucial role in boosting Netflix's popularity both domestically and internationally.Until Sunday, Netflix was seen as a relatively safe bet in an otherwise volatile tech landscape.A recent Bank of America note had even titled its earnings analysis 'Predictable in an unpredictable world,' citing the platform's consistent returns — a 30% stock gain in 2025 prior to this tariff shock.President Trump announced a 100% tariff on all movies produced outside the United States, citing concerns about their impact on 'national cohesion and security.'Netflix shares dropped 4% on Monday, marking the steepest one-day decline since April. The company also saw a loss of $20.4 billion in market capitalization.
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