United States President Donald Trump has renewed his threat to add a 100% tariff on films made outside the U.S., as he continues to announce sweeping new tariffs.
Trump previously said the U.S. would impose tariffs on films in May. He has not offered details on how this would be implemented.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” wrote Trump on Truth Social.
“Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States.”
Global film and television production spending increased by US$16.2 billion in 2024 after the 2023 strikes by U.S. actors’ union SAG-AFTRA and the Writers Guild of America, according to a ProdPro report. Spending fell below pre-strike levels in the year’s second to fourth quarters, however.
Production spending in the U.S. dropped by 26% from 2022 to 2024. California raised its film tax credit from $330 million to $750 million in July, in a bid to encourage film production in the state.
The U.S. film industry reported a $15.3 billion trade surplus in 2023, including a positive trade balance in every major global market.
“I’m relieved President Trump recognises that we are losing a signature American product: the domestic film & TV industry. However, his 100% tariff on foreign films will raise costs for consumers,” said U.S. Representative Laura Friedman, whose district includes Hollywood.
“Fundamental issues remain unresolved as to what in practice this means and how this can be applied,” Screen Producers Australia CEO Matthew Deaner said of the potential film tariffs. “While Australia isn’t as exposed as some other countries, it’s vital we diversify our industry through a broader range of international partnerships and expanded co-production arrangements."
Paramount Skydance (NASDAQ: PSKY), Warner Bros Discovery (NASDAQ: WBD), and Netflix (NASDAQ: NFLX) all saw shares dip shortly after opening, following Trump’s Truth Social post at 8:56 am EDT.
Trump also said on Monday that the U.S. would impose tariffs on foreign-made furniture. The Supreme Court will begin hearing arguments on the legality of many of Trump’s global tariffs in November.
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