Netflix (NFLX), Disney (DIS) and other media stocks fell in pre-market trading Monday following President Trump’s call for a 100% tariff on all foreign-produced films. 

Netflix led the declines, down over 5%. WBD (WBD), Paramount (PARA) and Disney (DIS) were all down at least 2% shortly before the opening bell. The companies did not immediately respond to Yahoo Finance’s request for comment on the proposed tariffs.

The market reaction comes after Trump directed his administration late Sunday to impose "a 100% tariff on any and all movies coming into our country that are produced in foreign lands," sending shockwaves through an industry still reeling from the pandemic shutdown and the recent writers’ and actors’ strikes.

"The Movie Industry in America is DYING a very fast death," Trump wrote in a post on Truth Social. "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat.

The announcement comes just weeks after China announced plans to "moderately reduce" imports of Hollywood movies in retaliation for escalating US tariffs on Chinese goods. 

The tariffs could impact a multitude of blockbusters currently or recently filmed abroad.

These include Disney's Marvel Studios titles "Avengers: Doomsday" and "Spider-Man: Brand New Day," both shot in London; 20th Century Studios' "Avatar: Fire and Ash," produced in New Zealand; Paramount's "Mission: Impossible — The Final Reckoning," filmed across various global locations; Lionsgate's "John Wick" spinoff "Ballerina," shot in the Czech Republic; and Lucasfilm’s "Star Wars: Starfighter," which is set to begin production in the United Kingdom.

Despite the initial stock declines, many unknowns remain about how such a tariff rollout would be structured and what the implementation might look like. Some key questions include whether the tariffs would apply to all forms of distribution, including streaming platforms, or just theatrical releases. 

It's also unclear how existing international co-productions would be treated. Industry insiders warn the policy could create logistical and legal complications for studios with global production pipelines, but for now, the specifics and the timeline remain unclear.

REUTERS / Reuters

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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