Netflix in the Crossfire of Trump’s Tariff Proposal
Netflix has long been known for its global storytelling, drawing audiences with diverse content from every corner of the world. But a new political move from former U.S. President Donald Trump is threatening to upend that model. His proposed 100% tariff on foreign-produced films and shows could dramatically raise the cost of bringing international content to American screens—and Netflix is right in the firing line.
According to Citi analyst Jason Bazinet, the impact could be severe. He estimates the tariff could slash Netflix’s earnings per share by as much as $6. That’s no small dent for a streaming giant already balancing fierce competition and rising production costs.
“Netflix’s international catalogue is one of its biggest strengths,” Bazinet told Barron’s. “This tariff risks undermining that competitive edge.”
Netflix sources nearly half its content from outside the U.S., investing in original productions from countries like South Africa, South Korea, and Spain. A tariff of this magnitude could force the company to either scale back its global acquisitions or pass rising costs onto subscribers.
Global Reactions: A Widening Impact
It isn’t just Netflix raising eyebrows. Countries across the globe are worried about the broader effects. The UK’s Creative Industries Minister, Chris Bryant, confirmed talks with U.S. officials to clarify what this policy means for Britain’s creative sector.
“We’re concerned about the knock-on effects on our film and TV exports,” Bryant said in a statement.
Spain’s Minister of Culture, Ernest Urtasun, echoed similar fears, meeting with film industry leaders to discuss possible European responses. In South Africa, industry insiders warn that local co-productions could struggle to find international buyers if tariffs dampen demand.
Netflix is already adjusting its strategy, exploring price changes and accelerating investment in local content to soften the blow of potential tariffs.
Netflix’s Game Plan: Doubling Down on Local Stories
Despite the looming tariff, Netflix isn’t backing down. Instead, it’s doubling down on its global production strategy, particularly in regions like South Africa. Recent hits like Blood & Water and Queen Sono have proven that homegrown content can resonate not just locally but worldwide.
“We’re committed to telling African stories for global audiences,” a Netflix South Africa spokesperson.
Producing more content within tariff-free zones could help the streaming platform maintain a diverse catalogue while avoiding steep import fees. But experts warn this may not fully replace the international content pipeline that has been key to Netflix’s success.
Meanwhile, in the U.S., California Governor Gavin Newsom is proposing a $7.5 billion tax credit programme to encourage domestic film production. While this could help bolster U.S.-based content, critics argue it won’t address the loss of global diversity.
What This Means for Subscribers and the Industry
For viewers, the effects of Trump’s proposed 100% tariff could mean fewer international titles on their screens or higher subscription prices to cover added costs. Netflix might need to balance these changes carefully to retain its subscriber base in competitive markets.
Industry-wide, the policy could create ripple effects. If the U.S. triggers a tariff war over content, other nations might respond with their own restrictions, fracturing the global entertainment ecosystem.
For now, Netflix is standing its ground, investing in local content and exploring ways to shield subscribers from potential price hikes. But as political and economic pressures mount, the future of global streaming remains uncertain.
ALSO READ: Parliament Won’t Summon MacG Over ‘Disgusting’ Remarks, Minnie Dlamini Seeks Legal
