Trump's movie tariffs shake Netflix, threaten flow of Korean dramas and anime

Netflix stock took a hit Monday morning following President Donald Trump's announcement that he would impose a 100% tariff on films produced outside the United States, according to Forbes, which reported the streaming giant suffered a 4% drop to $1,113 at market open. The slide came in direct response to Trump's Sunday evening proclamation on Truth Social that he would slap a 100% tariff on "any and all Movies coming into our Country that are produced in Foreign Lands," declaring them a "National Security threat." The stock partially recovered to a 1.9% daily loss by close, trading at $1,134 after White House spokesperson Kush Desai provided some clarification to the Associated Press, stating that "no final decisions on foreign film tariffs have been made" but "the Administration is exploring all options."

As Forbes pointed out, other entertainment companies also struggled, with shares of Disney, Max's parent Warner Bros. Discovery, Paramount Global, and Universal Pictures' parent Comcast all experiencing declines. The initial 4% drop represented a staggering $20.4 billion loss in market capitalization for Netflix, almost exactly the same as Warner Bros. Discovery's entire $20.5 billion valuation.

The announcement has created tremendous uncertainty throughout the entertainment industry, as explained by Cartoon Brew in their analysis of how the tariffs might work. Unlike physical goods, on which duties are collected when entering U.S. ports, movies are services with a more complicated tariff structure. Henning Molfenter, the former head of the German Babelsberg Studio with producer credits on "The Pianist" and "Captain America: Civil War," raised several questions in comments to The Hollywood Reporter that were highlighted by Cartoon Brew: "Is it just movies, or also streaming series? Is it visual effects, co-productions, or international film financing? There's a huge degree of uncertainty."

The impact could be particularly significant for Netflix, as more than half (51%) of its 2024 content spending went to content from outside North America, according to market research firm Ampere Analysis. About 70% of the streamer's paid subscriptions come from outside the U.S. and Canada. Some of Netflix's most popular recent programs among American audiences include shows filmed outside the U.S., including the British period series "Bridgerton" and the South Korean "Squid Game."

The implications for international content are particularly concerning for fans of anime and Asian dramas, as Polygon noted in their coverage of how Trump's "fast-and-loose approach to trade war" could disrupt entertainment imports. The announcement immediately raised questions about what this might mean for the upcoming Cannes Film Festival, where hundreds of projects will seek international funds and deals for global distribution.

Polygon specifically highlighted concerns for the booming anime industry, questioning what might happen to releases like the fall debut of "Demon Slayer: Kimetsu no Yaiba Infinity Castle," the kickoff to a hotly anticipated new trilogy of films. Last June, Sony expressly acquired the Alamo Drafthouse theater chain to leverage its anime movie business, investments that could be threatened by such tariffs. Hollywood production has been of particular interest to the president since he took office for his second term, with Polygon noting that in January, Trump named actors Jon Voight, Sylvester Stallone, and Mel Gibson as "special ambassadors" to Hollywood. According to Deadline reports cited by Polygon, Voight has taken the title seriously and recently met with studios and artistic guilds to better understand industry challenges.

Sources:

• https://www.forbes.com/sites/dereksaul/2025/05/05/netflix-suffers-20-billion-loss-as-trump-wields-100-movie-tariffs/

• https://www.cartoonbrew.com/feature-film/anime-is-now-a-national-security-threat-according-to-trump-247108.html

• https://www.polygon.com/movies/597689/trump-movie-tariff