US to impose 100% tariffs on films made outside the country
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The news: The US will impose a 100% tariff on all movies made outside of the country, US President Donald Trump said on Monday.
The context: In a post on Truth Social, Trump said: “Our movie making business has been stolen from the United States of America, by other Countries, just like stealing 'candy from a baby.'”
It is not immediately clear how Trump will impose the tariffs or when they would come into effect. Should the tariffs be enacted, it would mark the first time Trump has imposed a tariff on a service rather than a good.
Trump first threatened imposing levies on foreign-produced movies in May this year, noting that other countries offer tax incentives to lure filmmakers abroad.
Australia is among a crop of countries, including Canada and New Zealand, that offer lucrative tax offsets to Hollywood studios and other major US entertainment companies to produce their content locally.
Shortly after his post on incoming film tariffs, Trump warned that he will be imposing “substantial tariffs on any Country that does not make its furniture in the United States. Details to follow!!!”
The numbers: Shares in Netflix and Warner Bros Discovery were down 1.5% and 1.2%, respectively, in early trading (12:00am Tuesday) on Monday.
The source: Trump Truth Social
