Donald Trump has repeated his threat to impose a 100% tariff on all films not made in the US, claiming the American industry had been stolen by other countries.
He said on Monday that California had been heavily affected and the levy would solve this long time, never ending problem.
In May, the US president indicated he would speak with Hollywood executives about his plan and begin the process of imposing the levy because America's film industry was dying a very fast death.
Trump's remarks follow a recent announcement of a new wave of tariffs, including a 100% levy on branded or patented drug imports alongside 50% tariffs on kitchen and bathroom cabinets.
Trump stated on his Truth Social platform: Our movie making business has been stolen from the United States of America, by other countries, just like stealing 'candy from a baby.'
He singled out California for its weak and incompetent governance and declared that the 100% tariff would apply to all movies made outside the US.
No timeline for the tariff's implementation has been provided, and it remains unclear if it will affect films on platforms like Netflix as well as theatrical releases.
Investment analyst Dan Coatsworth expressed skepticism about the tax's viability, noting that many films are shot internationally due to better financial incentives.
Coatsworth argued, The threat of 100% tariffs on movies made outside of the US raises more questions than it does answers. He pointed out the complexities of identifying what constitutes an American-made movie, especially if it includes foreign actors or funding.
Additionally, the implementation could potentially increase production costs in the US, straining filmmakers and possibly decreasing consumer demand for streaming and cinema.
Despite the controversy, market reactions suggest investors do not currently view this as a significant threat, as stocks for companies like Netflix and Disney briefly dipped but then recovered.
Several recent major films from US studios were filmed outside America, including 'Deadpool & Wolverine', 'Wicked', and 'Gladiator II'. Overall, the US remains a key player in global film production, with $14.54 billion in production spending last year, although this reflects a 26% decrease since 2022. Other countries, including Australia, New Zealand, Canada, and the UK, have seen increases in their production spending.
