Netflix, Walt Disney Co., and Paramount Global were among other media stocks that dropped on Wall Street on Monday, May 5, 2025, after US President Donald Trump announced 100 per cent tariffs on foreign movies in efforts to save the American movie industry and Hollywood, according to a Truth Social post on May 5, 2025.
Media Stocks Crash
Stocks such as Netflix, Paramount Global, Walt Disney Co., Fox Corporation, and Warner Bros. Discovery were hit during Monday’s US market session.
Netflix shares lost more than 4 per cent, dropping to $1,107.01 apiece after the markets opened, compared to $1,156.49 at the previous US market close. The shares recovered some of their ground and are now trading 1.17 per cent lower at $1,143 as of 12:19 p.m. (EDT).
Paramount Global shares also dropped 3.1 per cent in the early US market session, and the shares are currently trading 0.87 per cent lower at $11.33 apiece, compared to $11.43 at the previous market close.
Other shares, like those of Walt Disney Co., lost 3.1 per cent to hit the intraday low of $89.61, compared to $92.49 at the previous Wall Street close. The shares are currently trading 0.12 per cent higher at $92.61 as of 12:25 p.m. (EDT).
Fox Corporation shares also dropped 3.6 per cent to $47.66 on Monday’s early US market session, compared to $49.47 in the previous market close. The stock is currently trading 0.04 per cent lower at $49.42.
Warner Bros. Discovery shares also tanked 5.3 per cent to hit the intraday low of $8.08, compared to $8.54 in the previous Wall Street close. The shares are currently trading 0.41 per cent lower at $8.49.
Is the American Movie industry dying?
US President Donald Trump’s post came early morning on May 5; hence, after the US markets reopened later on Monday, the media stocks took a hit as investors did not reflect the optimism from the tariff announcement.
“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. Hollywood, and many other areas within the U.S.A., are being devastated,” said Trump in his post on Truth Social.
He authorised the 100 per cent tariff rates effective immediately for all movies imported from outside the United States.
“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. WE WANT MOVIES MADE IN AMERICA, AGAIN!” said Donald Trump.
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