Donald Trump renewed his threat to impose a 100% tariff on all films produced outside the United States. He claimed foreign countries had “stolen” the American film industry. On Monday, he said California suffered most and the tariff would “solve this long-time, never-ending problem.”
In May, Trump announced plans to meet Hollywood executives and start imposing the levy. He warned that America’s film industry was dying “a very fast death.” His comments follow a new wave of tariffs last week, including a 100% levy on branded or patented drug imports and 50% levies on kitchen and bathroom cabinets.
California faces the brunt
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 begin. The White House has not commented. It remains unclear whether films on streaming platforms such as Netflix or in cinemas would be affected, or how the levy would be calculated.
Canadian concerns over tariffs
The Canadian Chamber of Commerce warned the proposed levy could harm US studios that rely 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 added that thousands of middle-class jobs in both countries could be at risk.
Dan Coatsworth, investment analyst at AJ Bell, questioned how the tax would work, noting tariffs usually apply to goods. He explained filmmakers shoot abroad for better incentives. “The threat of 100% tariffs raises more questions than it answers,” he said. Defining an American-made movie is tricky if films have foreign actors, directors, or funding. Coatsworth added that forced US production could increase costs, which studios would pass to customers, potentially hurting streaming services and cinema revenues.
Investors currently do not see the threat as serious. Stocks for Netflix and Disney dipped briefly but rebounded. Recent US studio films, including Deadpool & Wolverine, Wicked, and Gladiator II, were produced abroad.
US still a top film hub
Despite challenges, the US remains a leading production hub. Research firm ProdPro reported $14.54 billion in US production spending last year, down 26% from 2022. Countries seeing increased spending include Australia, New Zealand, Canada, and the UK.
The UK government monitors the proposed US tariff and its impact on the British film industry. A spokesperson for the Department for Business & Trade said the UK film sector employs millions and generates billions for the economy.
Expanded tariffs on timber and furniture
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 new tariffs take effect on 14 October. Some levies could rise sharply next year for countries that fail to reach agreements with the US. This follows last week’s announcement of a 100% tariff on branded or patented drug imports unless companies build factories in the US.
