11:21 AM EDT, 05/05/2025 (MT Newswires) -- It's unclear to what extent the Trump administration's planned tariffs on foreign films will apply to Netflix ( NFLX ) , Wedbush said in a research note Monday.

President Donald Trump said Sunday in a social media post he plans to impose a 100% tariff on movies shot outside the US, according to media reports.

"We do not know the extent to which this will apply to Netflix ( NFLX )," Wedbush said. "We do not know if this will apply to already-produced or only apply to newly produced content."

Wedbush said that "75% of Netflix's ( NFLX ) overall content is produced internationally, with foreign language content all international and a large percentage of domestic production moved to Canada and the UK for cost savings."

The "portion of Netflix's ( NFLX ) $18 billion in content spending that is newly produced is likely only around $3 billion-$5 billion, and of that, only $2 billion-$3 billion is foreign produced," the investment firm said.

"The balance of its spending is for content that was produced prior to the materialization of Trump's whim and caprice, and an interpretation of his 'idea' will determine whether the impact will be felt in 2025 or in 2026 and beyond," the note said.

Also, Trump's planned tariffs on films made outside the US will likely "face tremendous pushback, initially from foreign countries imposing tariffs (or an outright ban) on US-produced content, and eventually from Congress," the note said.

Meanwhile, even amid this "headline risk," 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 investment firm said.

Wedbush reiterated its outperform rating on Netflix ( NFLX ).

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