12:59 PM EDT, 05/05/2025 (MT Newswires) -- Shares of major media, streaming and television companies were down Monday after US President Donald Trump announced a 100% tariff rate on foreign-produced films, with Wedbush Securities saying that Walt Disney ( DIS ) , Warner Bros Discovery ( WBD ) and Paramount Global ( PARAA ) are among the companies that face a "significant amount" of risk.

In a social media post Sunday, Trump said he was authorizing the Department of Commerce and the US Trade Representative to immediately start the process of imposing 100% duties on "any and all movies coming into our country that are produced in foreign lands." Other nations are offering "all sorts of incentives" to pull American filmmakers and studios away from the US, thus impacting Hollywood, he said.

Shares of Netflix ( NFLX ) declined 2.1% in Monday afternoon trade, while Disney ( DIS ) edged down 0.4%. Warner Bros decreased 1.2%, Paramount fell 1.1% and Comcast ( CMCSA ) nudged 0.2% lower. Amazon.com ( AMZN ) , which owns the Amazon Prime streaming service, was down 1.6%.

"We think the large studios and distributors including Disney ( DIS ), Warner Bros Discovery ( WBD ), Paramount, Comcast ( CMCSA )/NBC Universal, Lionsgate, and Sony ( SONY ) , and various independent studios carry a significant amount of risk as they will have to lobby the Trump administration to set a reasonable standard for films that require live sets in foreign settings while otherwise moving productions stateside for studio-based scenes," Wedbush analysts, including Alicia Reese, said in a Monday note to clients. As long as there's some production in the US, a tariff could likely be avoided or minimized, the analysts said.

The Motion Picture Association of America didn't immediately reply to MT Newswires' request for comment.

Trump's move is likely to draw a "tremendous pushback," initially from other countries that may impose tariffs or announce an outright ban on US-produced content, and eventually from Congress, according to Wedbush.

The brokerage said it's currently not clear if Trump's proposed tariffs will apply to ticket sales or the entire value chain, including streaming. In the near term, studios can shift some portion of their production to the US with logistical adjustments and higher tax rates, unless cities offer "similar" tax relief as the foreign territories provided, Wedbush said.

The brokerage assumed that 75% of Netflix's ( NFLX ) overall content is produced overseas, with foreign language content all international and a "large percentage" of domestic production moved to the UK and Canada for cost savings. The streaming giant has "little control" over where the vast majority of its content is produced, according to the note.

Wedbush said it's is unsure if the tariffs will apply to Netflix's ( NFLX ) already-produced content or newly produced projects. "Despite the headline risk, we maintain that Netflix ( NFLX ) is positioned to accelerate ad-tier revenue contribution for the next several years by adding live events, improving its advertising solutions and targeting, and broadening its content strategy," the analysts said.

Price: 1143.17, Change: -13.32, Percent Change: -1.15