Netflix ( NFLX ), Warner Bros. ( WBD ), and other media stocks fell Monday following President Trump's call for a 100% tariff on all foreign-produced films.

Stocks recouped steeper losses by mid-morning, although Netflix continued to lead the declines, down about 2%. Warner Bros. Discovery and Paramount Global ( PARA ) slipped around 1% after also recovering from earlier session lows. Disney ( DIS ) traded flat.

The companies did not immediately respond to Yahoo Finance's request for comment.

The market reaction comes after Trump directed his administration late Sunday to impose "a 100% tariff on any and all movies coming into our country that are produced in foreign lands," sending shockwaves through an industry still reeling from the pandemic shutdown and the recent writers' and actors' strikes.

"The Movie Industry in America is DYING a very fast death," Trump wrote in a post on Truth Social . "Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat."

Earlier this year, Trump appointed a trio of actors — Jon Voight, Sylvester Stallone, and Mel Gibson — as his "special ambassadors" to Hollywood. He introduced the initiative in January, describing Hollywood as “a great but very troubled place.”

'Insane and devastating'

Trump's announcement follows China's move to " moderately reduce " imports of Hollywood movies in retaliation for escalating US tariffs on Chinese goods.

The proposed tariffs could affect several blockbusters filmed abroad, including Disney's "Avengers: Doomsday" and "Spider-Man: Brand New Day" (London), 20th Century's "Avatar: Fire and Ash" (New Zealand), Paramount's "Mission: Impossible — The Final Reckoning" (global locations), Lionsgate's Ballerina (Czech Republic), and Lucasfilm's "Star Wars: Starfighter" (UK).

Read more: The latest news and updates on Trump's tariffs

"Until there is more clarity, this new development — which should’ve been predicted by all Hollywood C-suites — will likely slow down the business, or, in a worst case, shut it down in exactly the same way that the strikes affected Hollywood," Chris Fenton, longtime Hollywood executive, told Yahoo Finance.

Veteran film producer Kathryn Arnold called the proposed tariffs "insane and devastating," warning they could wipe out lower to mid-budget films by driving up costs and disrupting a globally interconnected system.