Donald Trump renewed his warning to impose a 100% tariff on all movies produced outside the United States. He claimed foreign countries had “stolen” America’s film industry. On Monday, he said California suffered most and the tariff would “solve this long-time, never-ending problem.”
In May, Trump announced he would meet Hollywood executives to begin the levy. He warned the American film industry was dying “a very fast death.” His remarks followed last week’s new tariffs, including a 100% levy on branded or patented drug imports and 50% tariffs on kitchen and bathroom cabinets.
California suffers the most
Trump wrote on Truth Social: “Our movie-making business has been stolen from the United States by other countries, just like stealing ‘candy from a baby.’ California, with its weak and incompetent governor, has been particularly hard hit!” He added that the 100% tariff would cover “any and all movies made outside the United States.”
The president did not specify when the tariff would take effect. The White House has not commented. Officials have not clarified whether the levy would apply to streaming platforms like Netflix, theatrical releases, or both, or how it would be calculated.
Canadian industry raises alarm
The Canadian Chamber of Commerce said the tariff could hurt US studios relying on Canadian crews, facilities, and talent. Catherine Fortin-LeFaivre, senior vice president of international policy, said it could raise costs, reduce investment, and weaken competitive advantages. She warned it could threaten thousands of middle-class jobs in both countries.
Dan Coatsworth, investment analyst at AJ Bell, questioned how the tax would work. Filmmakers often shoot abroad for better incentives. He said defining an American-made movie is difficult if films feature foreign actors, directors, or funding. Forced US production could increase costs, which studios might pass to viewers, hurting streaming services and cinemas.
Investors currently view the threat as limited. Netflix and Disney stocks dipped briefly but recovered. Recent US studio films, including Deadpool & Wolverine, Wicked, and Gladiator II, were produced abroad.
US continues to lead film production
Despite challenges, the US remains a global production hub. Research firm ProdPro reported $14.54 billion in US production spending last year, down 26% from 2022. Countries attracting more spending include Australia, New Zealand, Canada, and the UK.
The UK government is monitoring the proposed tariff and its impact on the British film industry. A Department for Business & Trade spokesperson said the UK film sector employs millions and generates billions for the economy.
Trump expands tariffs to furniture and timber
Trump also announced 10% tariffs on softwood timber and lumber, and 25% levies on kitchen cabinets, vanities, and upholstered wooden furniture. Earlier, he hinted at “substantial tariffs on any country that does not make its furniture in the United States,” adding, “Details to follow!!!”
The tariffs take effect on 14 October. Some levies could rise next year for countries failing to reach agreements. This follows last week’s announcement of a 100% tariff on branded or patented drug imports unless companies build factories in the US.
