Netflix (NFLX) shares closed down nearly 2% on Monday, May 5 after President Donald Trump called for 100% tariffs on “all movies that are produced in foreign lands.”

In a recent post on Truth Social, the U.S. president said a “concerted effort” from other countries to lure filmmakers and studios into making movies abroad was a “national security threat.”

Despite today’s decline, NFLX stock is up nearly 40% versus its low in early April.  

What Tariffs on Foreign-Made Movies May Mean for NFLX

Higher tariffs on foreign-made films under Trump could prove a meaningful headwind for the movies industry at large. 

In fact, they could “slow the business or shut it down in exactly the same way that strikes affected Hollywood,” said Chris Fenton, a veteran filmmaker in an interview with Yahoo Finance said today. 

The proposed tariffs could mean a particularly big risk for Netflix since it produces more films compared to any of its peers and generates a little under one-third of its overall viewership from movies. 

Still, Josh Brown, the chief executive of Ritholtz Wealth Management, remains bullish as ever on NFLX shares for 2025. 

Brown’s Bullish View on Netflix Stock for 2025

Josh Brown loaded up on Netflix stock last month, saying it’s the “best stock in the market for 2025.”

Brown has immense confidence in the streaming giant’s ability to retain subscribers even if the U.S. economy slides into a recession in the back half of this year.

An economic slowdown could make subscribers trade down to the more affordable, ad-supported tier, but that may only be a positive for Netflix, given “it makes more money from [the] ad-supported tier than it does from the premium tier,” he said in a CNBC interview. 

All in all, NFLX shares have been resilient amidst a down market this year and he expects that resilience to sustain moving forward. 

Wall Street Sees 5% Downside in Netflix on Average

Investors should note, however, that Wall Street doesn’t particularly agree with Brown on Netflix stock. 

While the consensus rating on NFLX shares currently sits at “Moderate Buy,” the mean target of $1,088 indicates potential downside of about 5% from current levels.