Donald Trump renewed his warning to impose a 100% tariff on all movies produced outside the United States. He said foreign countries had “stolen” America’s film industry. On Monday, he claimed California suffered most and the tariff would “solve this long-time, never-ending problem.”
In May, Trump announced plans to meet Hollywood executives and begin the levy. He warned that the American film industry was dying “a very fast death.” His statement followed a wave of new tariffs last week, including a 100% levy on branded or patented drug imports and 50% tariffs on kitchen and bathroom cabinets.
California hit hardest
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 if the levy would apply to streaming platforms like Netflix, theatrical releases, or both, or how it would be calculated.
Canadian industry raises concerns
The Canadian Chamber of Commerce warned that the tariff could harm US studios relying on Canadian facilities, crews, and talent. Catherine Fortin-LeFaivre, senior vice president of international policy, said the levy could raise costs, reduce investment, and weaken competitive advantages. She added it could threaten thousands of middle-class jobs in both countries.
Dan Coatsworth, investment analyst at AJ Bell, questioned the practical impact of the tariff, noting that it is difficult to define an American-made movie if films feature foreign actors, directors, or funding. Filmmakers often shoot abroad for better incentives. He said forced US production could increase costs, which studios would pass to viewers, potentially hurting streaming and cinema revenues.
Investors currently see the threat as limited. Stocks for Netflix and Disney dipped briefly but rebounded. Recent US studio films, including Deadpool & Wolverine, Wicked, and Gladiator II, were produced abroad.
United States remains a major production hub
Despite challenges, the US continues to lead in global film production. Research firm ProdPro reported $14.54 billion in 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 tariff and its potential impact on the British film industry. A Department for Business & Trade spokesperson noted the UK film sector employs millions and generates billions for the economy.
Trump broadens 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 that fail 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.
