How Trump’s Tariff on Movies Could Impact Your Streaming Costs
President Donald Trump’s proposed 100% tariff on foreign-made movies threatens to increase your streaming subscription costs significantly in the coming months. Americans already spend an average of $69 monthly on video streaming services, representing a 13% increase from last year alone. According to The Wrap’s reporting of Citi analyst Jason Bazinet, Netflix would need to raise average revenue per user by approximately 7% to offset potential production costs.
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The tariff directly targets foreign film imports, which comprise roughly 50% of Netflix’s original content library and substantial portions of other platforms. If implemented, the policy could force streaming services to double their content acquisition expenses for international productions. Here’s how these additional costs will inevitably translate to higher subscription fees for American consumers seeking entertainment content.
Major Streaming Platforms Face Billions in Additional Production Expenses
Netflix could face up to $3 billion in additional annual costs under worst-case scenarios, according to Citi analyst Jason Bazinet’s analysis reported by The Wrap. The streaming giant’s stock dropped 4.55% following Trump’s initial announcement, while Disney declined 1.7% and Warner Bros. Discovery fell 2.6%, according to Investing.com. According to The Hill, Netflix dropped around 4% in early morning trading, Disney fell more than 2% and Warner Bros. Discovery was down more than 3%.
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Commerce Secretary Howard Lutnick confirmed the administration is actively working on tariff implementation, though specific enforcement mechanisms remain under development, per CBS News. Citi analyst estimated Netflix’s earnings per share could decline by 20% if the company absorbs tariff costs internally. However, most industry observers expect streaming services will protect profit margins by raising subscription prices rather than reducing earnings.
Existing Price Hikes Create Perfect Storm for Consumer Wallets
Streaming services alone cost U.S. households an average of $42 monthly before considering additional entertainment subscriptions. Nearly 60% of American adults are reconsidering paid subscriptions due to budget constraints and price fatigue across multiple service categories.
Many services have already implemented aggressive price increases throughout 2025, with Disney+ raising fees for the fourth consecutive year. According to CBS News, the ad-supported Disney+ plan jumped from $9.99 to $11.99 monthly, while premium subscriptions reached $18.99 in October. Fox Business reported that Apple TV+ announced a 30% price increase in August, moving from $9.99 to $12.99 per month.
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