Business

Trump renews threat of 100% tariffs on major global industry

Trump renews threat of 100% tariffs on major global industry

President Donald Trump is again threatening to impose 100% tariffs on movies produced outside the United States.
Trump first threatened 100% tariffs on foreign films in May. He mentioned the idea again in a Truth Social post on Monday.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby.’ California, with its weak and incompetent Governor, has been particularly hard hit,” he wrote, according to Variety. “Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter.”
In May, Trump deemed foreign movies a “national security threat,” Variety noted. It’s unclear what motivated his new comments.
When Trump first mentioned the idea of a movie tariff, there was uncertainty about how such a tax would be implemented and whether he had the authority to do it at all, according to Variety.
Film and television production has been moving overseas more often in recent years, Variety said. The United Kingdom, Australia and New Zealand, for example, all offer incentives that make filming in those locations less expensive.
Studio executives earlier this year told Reuters they were “flummoxed” by how a movie tariff might be enforced. Modern films often use production, financing, post-production and visual effects spread across multiple nations.
Still, it’s possible such a tariff could help some U.S. studios, including Liverpool’s American High. Studio founder Jeremy Garelick said in May that this sort of shake-up would play into his company’s strengths.
If Trump follows through with his latest threat, it would mark the first time he has essentially imposed a tariff on a service rather than a good, according to CNN.
Trump is preparing a number of new tariffs this week. The administration is set to impose new levies on Wednesday on branded drugs, heavy trucks, kitchen cabinets and vanities and upholstered furniture, according to CNN.