Donald Trump has reiterated his threat to introduce a 100% tariff on all films not made in the United States, alleging that the nation's film industry has been 'stolen' by foreign nations.
Speaking on Monday, Trump emphasized the detrimental impact on California's economy and suggested that the proposed levy would address what he describes as a longstanding issue afflicting American cinema.
The former president's comments follow his earlier indication in May to consult with Hollywood executives about this strategy, amidst claims that the U.S. film industry is facing an accelerated decline.
Recently, Trump announced a new series of tariffs, which included a hefty tax on pharmaceutical imports and additional levies on kitchen and bathroom products.
On his Truth Social platform, Trump stated: Our movie making business has been stolen from the United States of America, by other countries, just like stealing 'candy from a baby.' He went on to specifically criticize California's governor, attributing the state's struggles in the film sector to ineffective governance.
While Trump mentioned that the tax would apply to all films made outside the U.S., he did not specify a timeline for the execution of these tariffs. Questions remain regarding whether the tariffs would cover movies distributed on streaming platforms like Netflix, and how the tariffs would be assessed.
Investment analyst Dan Coatsworth expressed doubt over the feasibility of imposing such a tax, noting that many filmmakers are drawn to produce movies abroad due to favorable fiscal incentives. The difficulty of defining an 'American-made' film further complicates the matter; for example, if a film is shot in the U.S. but features foreign actors or financing, it raises questions about classification.
Coatsworth warned that if filmmakers were forced to produce domestically, this could result in higher production costs, ultimately affecting both the streaming services and cinema chains due to potential price increases passed to consumers.
Despite the apprehension surrounding Trump's declaration, market reactions have been subdued; stocks for major media companies such as Netflix and Disney experienced only a brief dip.
Recent statistics show that several blockbuster films produced by U.S. studios were filmed outside the country, indicating a significant trend in the industry. While the U.S. remains a key player in global film production, there has been a notable drop in spending, with last year's total at $14.54 billion—a decrease of 26% from 2022. Meanwhile, countries like Canada, the UK, Australia, and New Zealand have seen a rise in production activities.
