President Trump’s proposed 100% tariff on foreign-made movies threatens to significantly increase streaming subscription costs. Americans already spend an average of $69 monthly on video streaming services, a 13% increase from last year. Netflix may need to raise average revenue per user by 7% to offset potential production costs.

The tariff targets foreign film imports, making up about 50% of Netflix’s original content library and portions of other platforms. If enacted, streaming services could see their content acquisition expenses for international productions double. These additional costs will likely lead to higher subscription fees for American consumers seeking entertainment content.

Netflix could face up to $3 billion in additional annual costs under worst-case scenarios. The streaming giant’s stock dropped 4.55% after Trump’s announcement, with Disney declining 1.7% and Warner Bros. Discovery falling 2.6%. Most industry observers expect streaming services to raise subscription prices to protect profit margins.

Commerce Secretary Howard Lutnick confirmed active work on tariff implementation, with Netflix potentially facing a 20% decline in earnings per share if absorbing tariff costs internally. Industry experts anticipate streaming services will raise subscription prices rather than reduce earnings to maintain profit margins.

Many streaming services have implemented aggressive price increases in 2025, with Disney+ raising fees for the fourth consecutive year. Experts recommend rotating streaming subscriptions monthly to reduce costs while maintaining access to desired content across different platforms, potentially saving households up to $360 annually.

Consumers can also consider downgrading to ad-supported tiers or sharing family plans to split costs. Sharing family plans with household members can help split costs, with Netflix’s standard plan supporting two simultaneous streams for $10.99 monthly. Additionally, consumers can explore free streaming platforms or bundle services through cellular providers for cost-effective viewing alternatives.

Read more at Yahoo Finance: How Trump’s Tariff on Movies Could Impact Your Streaming Costs