Supply Chain News Report – 10/06/2025
Former US President Donald Trump has reiterated his proposal to impose a 100% tariff on films not produced in the United States, saying the measure is aimed at protecting the domestic movie industry.
Speaking on Monday, Trump claimed that the American film sector had been weakened by foreign competition, particularly in California, and argued that the tariff could address what he called a long-standing problem. He previously raised the idea in May, when he said he would consult Hollywood executives about implementing the measure, citing concerns that the industry was experiencing rapid decline.
The proposal comes on the heels of a new wave of tariffs announced by Trump last week, including a 100% duty on branded or patented drug imports and 50% levies on kitchen and bathroom cabinets.
Posting on his Truth Social platform, Trump stated: “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 added that the 100% tariff would apply to “any and all movies that are made outside of the United States,” although no timeline has been provided for when such a measure might take effect.
It remains unclear whether the proposed tariffs would extend to streaming platforms such as Netflix or apply solely to theatrical releases. Industry analysts have also questioned how the tariffs would be calculated.
The Canadian Chamber of Commerce expressed concern over the proposal, noting that many Hollywood productions rely on Canadian studios, crews, and facilities. Catherine Fortin-LeFaivre, senior vice president of international policy and global partnerships, warned that the move could increase costs for US studios, reduce cross-border investment, and jeopardize thousands of jobs in both countries.
Dan Coatsworth, an investment analyst at AJ Bell, said there were significant questions around implementation. “The threat of 100% tariffs on movies made outside of the US raises more questions than answers,” he said, pointing to the widespread use of foreign tax incentives that attract filmmakers to shoot abroad. He added that defining what qualifies as an American-made film could be complicated if foreign actors, directors, or financing are involved.
Analysts have cautioned that forcing more production inside the US could drive up costs, which may ultimately be passed on to consumers through higher ticket prices or streaming fees. Still, investor reaction to Trump’s comments has so far been muted, with shares of major companies such as Netflix and Disney initially dipping but quickly recovering.
Recent high-profile films produced by US studios but shot abroad include Deadpool & Wolverine, Wicked, and Gladiator II. Despite growing foreign competition, research from movie industry firm ProdPro shows the US remains a leading global production hub, generating $14.54 billion in production spending last year, though this represented a 26% decline compared to 2022. Australia, New Zealand, Canada, and the UK were among the countries that saw production spending increase during the same period.
The UK government is monitoring the situation closely. A spokesperson for the Department for Business & Trade said the British film sector, which employs millions and contributes billions to the economy, would be reviewing details of any US tariff to assess its impact.
Alongside the film-related announcement, Trump also introduced a new set of tariffs on Monday, including 10% duties on imports of softwood timber and lumber, and 25% tariffs on kitchen cabinets, vanities, and upholstered wooden furniture. According to a proclamation signed by Trump, these tariffs will take effect on October 14, with some rates scheduled to increase further next year if trade agreements are not reached.
These measures follow Trump’s earlier announcement of a 100% tariff on branded drug imports, unless companies establish manufacturing facilities within the United States.
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