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 said he would talk to Hollywood executives about his plan and to begin the process of imposing the levy because America's film industry was dying a very fast death.
Trump's remarks come as he announced a new wave of tariffs last week, including a 100% levy on branded or patented drug imports as well as 50% levies on kitchen and bathroom cabinets.
Trump said 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.'
California, with its weak and incompetent Governor, has been particularly hard hit!
He said the 100% tariff would be imposed on any and all movies that are made outside of the United States.
Trump did not specify when the tariff will come into force, and the White House has been approached for a comment.
It remains unclear if the tariffs would apply to films on streaming services, such as Netflix, alongside those shown at cinemas, and how they would be calculated.
Dan Coatsworth, an investment analyst at AJ Bell, questioned the practicality of such a tax given tariffs are typically imposed on goods. He noted many filmmakers choose to shoot in other countries due to better incentives.
The threat of 100% tariffs on movies made outside of the US raises more questions than it does answers, he said.
Mr. Coatsworth emphasized the difficulty in defining an American-made movie if it includes foreign actors, directors, or funding.
So it's hard to understand just how Trump intends to impose the levy, he added. Theoretically, being forced to produce movies in the US could increase their costs, which content makers would pass on to customers, potentially harming demand for streaming services and cinema operators.
He indicated that investors do not currently perceive this as a significant threat, as stocks for companies like Netflix and Disney dipped briefly but bounced back.
Several recent major films produced by US studios have been shot outside America, including Deadpool, Wolverine, Wicked, and Gladiator II.
Despite recent challenges, the US remains a major film production hub globally, with film industry research firm ProdPro reporting $14.54 billion in production spending last year, though down 26% since 2022.
Other countries, including Australia, New Zealand, Canada, and the UK, have seen an increase in film production spending during this period.
