Shares of US media companies fell Monday after US President Donald Trump announced his plans to impose a 100% import tariff on all films produced in countries outside the US.
Shares of Netflix, the US-based streamer with a global production network that produces content for a global audience, fell 1.66% as of 1615GMT.
Broadcasting platform Paramount’s shares lost over 1%, while Warner Bros Discovery’s shares dropped 1.52%.
In addition, shares of movie theater operator Cinemark fell 2.64%, and shares of Canadian-based production company IMAX were down 3.22%.
On Sunday, Trump announced a 100% tariff on all movies produced outside the country.
“I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands,” he said on social media.
Trump said the movie industry in America is dying “a very fast death.”
“Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States,” he said.
Stressing that Hollywood and many other areas in the US are “being devastated,” he called this “a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”
The effect of the proposed tariff is unclear, as many movies made by US-based studios shoot scenes in other countries, while final production takes place in the US.