Trump Proposes 100% Tariff on Foreign Films: What This Means for Movie Lovers and the Industry

Former President Donald Trump has announced plans to place a 100% tariff on all movies produced outside the United States. This declaration was made in a post on Truth Social. As of now, he has not provided details on when or how this tariff may be implemented.

If enacted, this would be a notable first—imposing a tariff on a service rather than a physical product. Trump previously mentioned this idea back in May, citing concerns that filmmakers are leaving the U.S. to take advantage of tax incentives offered by other countries. In his recent post, he highlighted California, claiming it has been particularly affected.

Hollywood was surprised when Trump first suggested the tariff. One industry source described it as “shocking,” warning that it could halt production almost entirely. However, many experts believe enforcing such a tariff would be complicated and legally ambiguous.

Actors and filmmakers generally prefer to stay close to home, yet many Hollywood studios find it cheaper to film overseas. Jay Sures, vice chairman of United Talent Agency, noted that the overall costs—including labor and other factors—make international filming more appealing.

Following Trump’s announcement, shares of some movie-related companies saw significant fluctuations. For instance, Netflix shares dipped by 1%, while others like AMC and Disney rose in value. This indicates mixed reactions in the industry.

Moreover, U.S. movie ticket sales have been on a decline. Since the pandemic, the number of major film releases has dropped, pushing more viewers toward streaming platforms. In 2018, the U.S. box office gross was nearly $12 billion but fell dramatically to just over $2 billion in 2020 due to theater closures. Although there has been a rebound, the overall box office has yet to reach pre-pandemic levels.

In addition to movies, Trump is also preparing to impose several other tariffs. These include a 100% tariff on specific branded drugs and various tariffs on heavy trucks, kitchen cabinets, and upholstered furniture. This broader trade strategy suggests a significant shift in how the former president plans to manage international economic relations.

As the conversation around these tariffs continues, industry experts and consumers alike will be watching closely to see how this will reshape Hollywood and other sectors. For more details on Trump’s tariff plans, you can read about them in CNN’s coverage.

Source link