US President Donald Trump has announced he will impose a 100 per cent tariff on all foreign-made movies in an unprecedented move that threatens to up-end Hollywood’s global business model.
The step raises uncertainty for studios that depend heavily on international box-office revenue and cross-border co-productions.
Mr Trump announced the measure in a post on his Truth Social platform, claiming US movie-making is losing ground to international competition.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing candy from a baby,” he wrote.
Donald Trump posted about the tariff on Truth Social. (Supplied: Truth Social/@realDonaldTrump)
However, it was not immediately clear what legal authority Mr Trump would use to impose a 100 per cent tariff on foreign-made films.
The White House did not immediately respond to a Reuters request for comment on how the tariffs would be implemented.
Warner Bros Discovery, Comcast, Paramount Skydance and Netflix also did not immediately respond to requests.
Shares of Netflix were down 1.5 per cent in early trading.
Movie tariff idea first floated in May
The president had first floated the idea of a movie tariff in May but offered very few details, leaving entertainment executives unsure whether it would apply to specific countries or all imports.
Trump announces 100 per cent tariffs on foreign movies
Studio executives told Reuters earlier this year that they were “flummoxed” by how a movie tariff might be enforced, given that modern films often use production, financing, post-production and visual effects spread across multiple countries.
The move has drawn scepticism from legal and trade analysts.
Some argue films are a form of intellectual property and part of the global trade in services, an area where the US often runs a surplus, raising questions about the legal basis for tariffs.
Co-productions with foreign studios have also become more common, adding to doubts about how such films would be classified.
Trump says details coming on furniture tariffs
In a separate post, the US president said details would soon emerge on tariffs for furniture imports, after announcing a 30 per cent levy on such goods imports last week.
“I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States. Details to follow,” he said, noting lost business in North Carolina.
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Mr Trump announced a 50 per cent tariff on imported kitchen cabinets and vanities, along with a 30 per cent levy on upholstered furniture, which are set to take effect on October 1.
The import duties will make it more challenging for companies to hold down prices, while executives in the industry have raised concerns over the lack of manufacturing capacity in the United States, as the country relies heavily on imports from China, Mexico and Vietnam.
Chief executives at Williams-Sonoma and RH, formerly known as Restoration Hardware, have both raised concerns about higher tariffs in recent earnings calls.
Prices for everything from clothes to TVs have gone up in recent months as manufacturers and retailers struggle with the ever-changing tariff environment while also trying to offset rising commodity and supply-chain costs.
Reuters
