Donald Trump has again threatened to impose a 100% tariff on all films produced outside the United States. He claimed that other nations had “stolen” America’s movie industry.
California in the spotlight
On Monday, Trump said California had been hit hardest by the current situation. He argued the new levy would “solve this long time, never ending problem”. In May, he had already announced talks with Hollywood executives. At that time, he warned the US film business was dying “a very fast death”.
Tariffs already hitting other products
His latest remarks followed the launch of new 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 wrote that America’s movie industry had been taken “like stealing candy from a baby”. He also attacked California’s governor, calling him “weak and incompetent”.
Unanswered questions remain
Trump promised the 100% tariff on “any and all movies made outside of the United States”. He did not reveal when it would start. The White House has not issued a response. It is unclear whether streaming platforms such as Netflix would be included. No details exist on how the charges would be calculated.
Canada warns of damage
The Canadian Chamber of Commerce expressed “deep concern” over the plan. It highlighted that US studios rely heavily on Canadian facilities, crews, and talent. Catherine Fortin-LeFaivre, senior vice president for international policy, said the tariffs would punish American studios. She warned they would raise costs, deter investment, and harm both economies. She also said the move could endanger thousands of middle-class jobs.
Analysts cast doubt
Investment analyst Dan Coatsworth of AJ Bell questioned how such a levy would work. He said tariffs usually apply to goods, not creative projects. He explained filmmakers often choose other countries for attractive tax incentives. He argued the proposal “raises more questions than it does answers”. Coatsworth added that defining an American-made film is complicated when foreign actors, directors, or funding are involved. He warned higher costs could reduce demand for cinemas and streaming services. Yet he noted investors stayed calm. Netflix and Disney shares dipped briefly before recovering.
Film industry shifts abroad
Recent American blockbusters including Deadpool & Wolverine, Wicked, and Gladiator II were filmed overseas. Research firm ProdPro said the US remains a central hub for film production. Last year, it recorded $14.54 billion in production spending, down 26% from 2022. Since then, countries like Australia, New Zealand, Canada, and the UK have drawn more investment.
Britain waits for clarity
Officials in London said they are waiting for details on how the tariff could affect British studios. A Department for Business & Trade spokesperson stressed the UK film sector supports millions of jobs and generates billions for the economy.
More tariffs on the horizon
On Monday, Trump also introduced tariffs on wood and furniture. He set a 10% levy on softwood timber and lumber and 25% tariffs on kitchen cabinets, vanities, and upholstered wooden furniture. Earlier that day, he hinted at the move 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 start on 14 October. Some will rise further next year if trade deals are not reached. These measures follow Trump’s earlier pledge of 100% tariffs on branded or patented drug imports unless companies build factories in America.
