President Donald Trump announced on Monday, September 29th, that his administration will impose a 100% tariff on all films produced outside the United States. In a Truth Social post, he wrote, “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby.’” Trump said the tariff is meant to protect Hollywood and criticized California Governor Gavin Newsom as “weak and incompetent.”
Trump did not specify how or when the tariffs would take effect. He also did not explain how the administration would calculate a film’s value or whether the levy would apply to productions that were partially filmed overseas. He said California had been “particularly hard hit” by foreign competition. The directive expands on his earlier threat in May, when he instructed trade officials to prepare enforcement options.
Industry reaction showed concern over the announcement. An entertainment executive described it as “shocking” but noted that the administration has limited ability to enforce such a tariff. Analysts pointed out that American studios often film abroad to reduce costs, with Jay Sures of United Talent Agency emphasizing that overseas production remains “infinitely cheaper.”
Market responses were mixed following the announcement. Shares of Netflix opened down 1% Monday morning, while AMC and Disney gained slightly. Hollywood observers said the uncertainty could affect future projects, with studios weighing the risks of tariffs against established overseas savings. California lawmakers argued that higher costs would likely be passed on to U.S. consumers through ticket prices and streaming fees.
The broader entertainment industry is facing revenue challenges. Domestic box office receipts peaked at nearly $12 billion in 2018 before collapsing to $2 billion in 2020 during the pandemic. Although theaters have since recovered, the number of major releases remains about half of what it was in 2019. Box office totals have not surpassed $9 billion in recent years, despite growth in streaming and the release of blockbuster titles.
The tariff announcement is part of a broader trade agenda. This week, the administration is set to impose a 100% tariff on branded drugs, a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets, and a 30% tariff on upholstered furniture. Trump separately pledged a “substantial” tariff on all imported furniture. Officials said the measures reflect his effort to protect U.S. industries facing foreign competition.
