The stock market took a beating after President Donald Trump announced he would be imposing a 100 percent tariff on any movie produced outside of the United States. Trump said he made the decision to save America's movie industry from 'dying a very fast death' - but shares drastically declined overnight plunging the stock market into chaos. Shares in Disney, Netflix, Warner Bros. Discovery, Paramount and Comcast were down one percent or more by Monday morning. In a Truth Social post Sunday evening, the commander-in-chief said: 'Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. He continued: 'Hollywood and many other areas within the USA are being devastated.' Studios in Hollywood have long filmed movies overseas for tax credit reasons, budgeting issues or to capture the setting of international locations. 'The Movie Industry in America is DYING a very fast death,' he noted, adding that he is authorizing the Department of Commerce and the US Trade Representative to 'immediately begin the process of instituting a 100 percent tariff on any and all Movies coming to our Country that are produced in Foreign Lands.' He did not specify if this new rule will apply to films on streaming platforms and theatrical releases. Trump also did not say if tariffs would be based on production costs or box office revenue. Wedbush’s Alicia Reese wrote to investors on Monday that large studios, distributors and 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,' CNBC reported. She estimated that 75 percent of Netflix’s content is produced outside the US and foreign language movies and television shows make a significant portion of the streaming service’s content. Reese noted that most of Netflix’s content is filmed by a third-party studio, and the company has little say over where that content is filmed. Barton Crockett, an analyst with Rosenblatt Securities said his new tariff push would 'lead studios to make less content.' 'There's also a risk of retaliatory tariffs against American content overseas,' she told Reuters. William Reinsch, a former senior Commerce official, echoes Crockett's concerns, adding that retaliation from other countries 'will kill our industry.' 'We have a lot more to lose than to gain,' Reinsch continued. Americans aren't the only ones who have spoken out about the new tariff, as leaders in New Zealand, Australia and other popular filming locations for Marvel movies and The Lord of the Rings said they are ready to defend their local film industries. British media union Bectu also urged the government to protect the country's 'vital' film sector and warned that tens of thousands of freelance jobs were on the line. London specifically has become a major hub for production due to tax incentives, English-speaking crews and sprawling infrastructure. Disney's Marvel Studios is currently filming a pair of Avengers sequels there, The Washington Street Journal reported. Mission: Impossible - The Final Reckoning and Jurassic World Rebirth - two of the summer's largest productions - were made either completely or primarily outside of the US. The US film industry had more than $15.3 billion in trade in 2023 and also created a positive trade balance with every major foreign major market, per a report from the Motion Picture Association. While many are fearful of what Trump's latest decision could go to Hollywood, a group in Los Angeles has been advocating for movies and TV shows to be completely filmed from beginning to end in Hollywood. Noelle Stehman, a writer and producer who worked on The Sopranos and a member of the 'Stay in LA' campaign, spoke out about the ongoing issue in the entertainment industry to the public in April. 'This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,' Stehman said, comparing the Michigan city that was once the automotive capital to Hollywood that appears to be on the same path of losing its long-time title. 'Stay in LA' is a political organization that aims to fight for productions in Hollywood and 'restore our city's vibrant creative industry and lift the entire city of LA up in the process,' according to its website. While many politicians see increasing funds for the industry as a type of giveaway that isn't all that crucial, others, including California State Senator Ben Allen and State Assemblyman Rick Zbur, have been trying to fight for more funds to flow into the struggling industry. Specifically, money has run low for post production and music aspects in films and TV shows. 'This is not a tax giveaway.' This is a job program that is keeping people in their homes, keeping people off the unemployment rolls,' Zbur said at the meeting. The meeting took place soon after FilmLA released its latest on-location production data, which revealed that shoots have reduced 22.4 percent in quarter one compared to the same time last year. In 2024, 6,823 shoots took place in quarter one, the non-profit organization found. As of January 2025 the number of shoots dwindled down to a staggering 5,295. The new number is also lower than it was in 2023 when the SAG-AFTRA strike consumed the industry. In July of that year there were 5,311 shoots, and in October there were 5,520, according to the data. There are also two proposed state bills in play that would make the credits possible in California, both of which have been sponsored by Allen and Zbur. Although the current goal is to get the tax allotment increased, the organization recognized that is just one step in the right direction. 'We know that it will take more work beyond the tax incentives to sustainably revitalize L.A.’s entertainment economy,' the group said.