Netflix slumps in pre-market trading after Trump announces tariff targeting foreign films
Published on 05/05/2025 04:40 PM
Netflix slumps in pre-market trading after Trump announces tariff targeting foreign filmsIn a Truth Social post on Sunday night, the US president declared his intention to impose the tariffs immediately, calling foreign films a “national security threat” and urging a return to domestic storytelling.By Asmita Pant May 5, 2025, 4:40:16 PM IST (Published)2 Min ReadEntertainment giant Netflix shares fell sharply in pre-market trading on Monday, May 5, shedding 4.63% to $1,103.00, down $53.49 from Friday’s close, as markets reacted to US President Donald Trump's surprise announcement of a 100% tariff on films produced overseas.
The streaming behemoth had been riding high with an 11-day winning streak, the longest in its history, and an all-time-high share price of $1,156.49. Year-to-date, Netflix stock remains up 30.42%, buoyed by stronger-than-expected Q1 earnings and a surge in both subscription and ad revenues.
Netflix has been one of the best-performing stocks in the early days of Trump’s second term. But Monday’s pre-market dip will end its historic winning streak.
In a Truth Social post on Sunday night, Trump declared his intention to impose the tariffs immediately, calling foreign films a “national security threat” and urging a return to domestic storytelling. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” he wrote, ordering the Commerce Department and US Trade Representative to begin work on the controversial policy.
The US entertainment sector is, according to the Motion Picture Association, responsible for 2.3 million jobs in 2023. US-based film and TV production spending has dropped 28% since 2021, and LA filming saw a 22% decline in the first quarter this year alone. Attractive tax incentives and lower costs have lured production to countries like Canada, the UK, and Australia.
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