Investors in major Hollywood studios and streaming platforms were rattled on Monday after President Donald Trump suggested a 100% tariff on foreign-made films.

Shares of Netflix, Disney, Paramount and Warner Bros. Discovery fell ahead of the opening bell, with Comcast-owned Universal also trading slightly down, according to CNBC.

Here’s how media stocks took a hit across the board:

Netflix dropped over 5%, leading the decline; Disney fell more than 3%; Warner Bros. Discovery slipped over 3%; Paramount was down more than 2%; and Comcast saw a smaller dip, falling less than 1%.

Donald Trump, in a Truth Social post Sunday night, called tax incentives offered by foreign countries “a national security threat” and said he would direct the Department of Commerce to impose a tariff on all films produced abroad and brought into the U.S.

However, how he plans to implement this measure remains unclear. It’s not specified which countries or studios would be affected, how the tariffs would be structured, or who would ultimately bear the cost—whether foreign producers, U.S. distributors, or American consumers.

Hollywood studios have long opted to film overseas to take advantage of foreign tax incentives or to authentically capture international settings.

Many productions span multiple countries, and major studios often maintain satellite production facilities around the world to support these global shoots.

When Trump introduced a 25% tariff on imports from Canada, a favored filming location for Hollywood, industry experts told CNBC that it likely wouldn’t significantly affect production. Since most films are shot digitally, the final product can be delivered online or via data storage devices, rather than involving physical goods like toys or clothing that are typically imported.

Unlike physical goods like toys or clothing, there’s no tangible product being exchanged.

This raises several questions: Which part of the production process would face the duty? Would the levy apply only to films, or would TV shows shot overseas be affected as well? And would completed projects be exempt?