WASHINGTON — President Trump on Monday renewed his threat to impose 100% tariffs “on any and all movies that are made outside of the United States,” framing the move as part of an effort to counter what he calls the “devastation” of the U.S. movie industry by foreign competition.
Trump blasted foreign governments in a fiery post, saying they’re luring film production out of America — “like stealing candy from a baby” — to weaken U.S. filmmaking.
CNN continues:
The president initially threatened a 100% tariff on foreign-produced movies in May, arguing that other countries offer tax incentives that have drawn filmmakers abroad. In his post on Monday, he singled out California, saying the state “has been particularly hard hit!”
The state, meanwhile, has proposed and put in effect many tax incentives, as have other American cities.
Hollywood was completely caught off guard when Trump first previewed the tariff in May. “On first blush, it’s shocking and would represent a virtually complete halt of production,” one industry insider told CNN at the time. “But in reality, he has no jurisdiction to do this and it’s too complex to enforce.”
American actors and directors generally prefer to work close to home. But “the fact is, it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper,” Jay Sures, vice chairman of United Talent Agency, told CNN in May.
The president has instructed the Department of Commerce and the U.S. Trade Representative to begin the process of enforcing a 100% duty on imported films. Trump also floated the possibility of tariffs on imported furniture from countries that lack domestic manufacturing.
The White House later said no final decisions have been made.
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