Media and entertainment stocks in the United States took a hit on Monday, May 5, after President Donald Trump announced plans to impose a 100% tariff on all movies produced outside the country a proposal that could disrupt Hollywood’s global production model and rattle the broader industry.

Though details of the policy remain unclear, Trump's statement has raised significant concerns within the entertainment sector. Uncertainty lingers around whether the tariffs would apply to films intended for theatrical release, streaming platforms, or be calculated based on production expenses or revenue performance.

According to the American Motion Picture and Television Industry, U.S. film and TV exports generated $22.6 billion in 2023, contributing to a $15.3 billion trade surplus. The potential tariff policy comes at a time when international production has become central to Hollywood’s cost strategy. A recent survey by ProdPro found that all five top-ranked production locations for 2025–2026 planning cycles are outside the United States driven by attractive tax incentives and lower operating costs.

Streaming platforms, particularly Netflix, could bear the brunt of the move. With its global-first content model that thrives on international production and localization, the company’s stock dropped 4.9% in premarket trading following the announcement  the steepest fall among media firms.

The shift away from U.S.-based filming has been evident for years. Despite Los Angeles’s long-standing identity as the heart of the movie industry, none of the top ten Best Picture nominees at this year’s Oscars were filmed in the city. Today’s film productions are increasingly spread across continents, with shooting in Europe, post-production in Canada, and visual effects outsourced to Asia a network that could be upended by a forced return to domestic production.

Shares of major entertainment giants including Walt Disney Co., Warner Bros. Discovery, and Comcast (owner of Universal) also slid between 0.8% and 2.7%, as investors weighed the potential cost implications of Trump’s proposal.

Analysts warn that implementing such tariffs could trigger retaliatory trade measures and strain international partnerships that Hollywood relies on to stay competitive in the global entertainment landscape.