Donald Trump has renewed his threat to impose a 100% tariff on all movies produced abroad. He said foreign countries had “stolen” America’s film industry.
California takes the hardest hit
On Monday, Trump said California suffered the most under the current system. He argued the tariff would “solve this long time, never ending problem”. In May, he had already announced plans to meet Hollywood executives. At that time, he warned the US film sector was dying “a very fast death”.
Tariffs extend to other industries
Trump’s warning followed the rollout of tariffs in other sectors. These included a 100% levy on branded or patented drug imports and 50% tariffs on kitchen and bathroom cabinets. On Truth Social, he said America’s movie business had been taken “like stealing candy from a baby”. He also criticized California’s governor as “weak and incompetent”.
Unclear implementation
Trump promised the 100% tariff on “any and all movies made outside of the United States”. He did not provide a start date. The White House has not commented. It remains unclear whether streaming services like Netflix would be included. No guidance has been given on how the tariff would be calculated.
Canada warns of consequences
The Canadian Chamber of Commerce said it was “deeply concerned” about the proposal. It emphasized that US studios rely heavily on Canadian crews, facilities, and talent. Catherine Fortin-LeFaivre, senior vice president for international policy, said the tariffs would punish American studios. She warned the measure would raise costs, reduce investment, and harm both economies. She added it could put thousands of middle-class jobs at risk.
Experts question feasibility
Dan Coatsworth, investment analyst at AJ Bell, said enforcing the tariff would be difficult. He explained that tariffs normally target goods, not creative projects. He noted filmmakers often choose foreign locations for better tax incentives. He said the plan “raises more questions than it does answers”. Coatsworth added that defining an American-made film would be complex with foreign actors, funding, or directors. He warned higher production costs could reduce demand for cinemas and streaming services. Still, investors appeared largely unconcerned, and Netflix and Disney shares recovered quickly after a brief dip.
More productions moving abroad
Recent US films, including Deadpool & Wolverine, Wicked, and Gladiator II, were filmed overseas. Research firm ProdPro confirmed the US remains a leading hub for global production. Spending totaled $14.54 billion last year, down 26% from 2022. Meanwhile, countries such as Australia, New Zealand, Canada, and the UK have attracted increasing production investment.
Britain monitors the situation
Officials in London said they are awaiting clarity on how the US tariffs could affect British studios. A Department for Business & Trade spokesperson said the UK film sector supports millions of jobs and generates billions for the economy.
Trump widens trade measures
Trump also announced tariffs on wood and furniture on Monday. He set a 10% levy on softwood timber and lumber and 25% tariffs on kitchen cabinets, vanities, and upholstered wooden furniture. Earlier, he previewed the plan on Truth Social. He promised “substantial tariffs on any country that does not make its furniture in the United States”. A presidential proclamation confirmed the tariffs will begin on 14 October. Some levies will rise further next year if trade agreements are not reached. These measures follow Trump’s earlier pledge of 100% tariffs on branded or patented drug imports unless companies build factories in the US.
