Trump announces 100% tariff on foreign-made movies

President Donald Trump announced in a Truth Social post on Monday that he plans to impose a 100% tariff on any movies produced outside of the United States.

Trump did not provide specifics on when or how the tariff would be implemented. If enacted, this would be the first time the U.S. imposes a tariff on a service rather than a tangible product.

This move follows an initial threat made in May, where Trump argued that foreign tax incentives have led filmmakers to produce movies abroad, thereby impacting the U.S. film industry. He particularly mentioned California, which he claimed has been “hard hit” by this trend. Hollywood was caught off guard by Trump’s earlier proposal, with some industry insiders expressing concern over the practical challenges of enforcement.

While many American actors and directors prefer to work domestically, industry experts argue that it is more cost-effective for Hollywood studios to shoot films overseas due to lower labor costs and tax rebates available in other countries.

Trump’s announcement caused a drop of 1% in Netflix’s stock price, while shares of companies like AMC and The Walt Disney Company saw an uptick. The U.S. box office has faced challenges in recent years, with consumer preferences shifting towards streaming platforms, especially since the pandemic, leading to a significant decline in movie theater revenues.

In addition to the movie tariff, the Trump administration is preparing to impose various other tariffs, including a 100% tariff on branded pharmaceutical products, a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and vanities, and a 30% tariff on upholstered furniture. Trump also indicated plans to introduce a "substantial" tariff on all furniture imports into the U.S.

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