President Donald Trump has ramped up his trade war by announcing a 100% tariff on all movies produced outside the United States, claiming foreign competitors have raided America’s film sector like “stealing candy from a baby.”
In a Monday post on Truth Social, Trump declared that the U.S. movie business has been “stolen” by other nations offering tax breaks and cheap labor, pulling production overseas. The move solidifies a proposal he first floated in May, when he directed the Department of Commerce and the U.S. Trade Representative (USTR) to explore heavy duties on imported films. Back then, Trump described the decline of the American movie industry as a “very fast death,” labeling it a “concerted effort by other Nations” that posed not just an economic risk but a “National Security threat” involving “messaging and propaganda.”
Trump emphasized repatriating film work to U.S. soil, stating, “We want movies made in America again!” He positioned the tariffs as a way to “level the playing field,” forcing studios to ditch foreign incentives and build operations at home.
But film insiders warn the policy could backfire on Hollywood. Major players like Disney, Paramount, and Warner Bros often film abroad to slash expenses, a habit that has helped them rebound from pandemic lows. Experts fear the tariffs will add fresh financial strain to an industry still mending.
The announcement unfolds against escalating trade frictions with China, the globe’s second-biggest film market. On the heels of Trump’s post, entertainment shares tumbled in premarket trading: Netflix dropped 1.4%, and Warner Bros Discovery fell 0.6%, according to a Reuters report.
This film tariff fits into Trump’s expansive protectionist push. Just last week, he rolled out a barrage of import levies spanning pharmaceuticals to household goods. On Truth Social, he specified a 100% import tax on pharmaceutical drugs unless companies construct plants in the U.S. with “breaking ground” or “under construction” qualifying for exemptions and no carve-outs otherwise.
Starting October 1, the lineup includes a 50% duty on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
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