Trump threatens 100% tariffs on foreign-made films, sparking global backlash

Donald Trump has renewed his threat to impose a 100% tariff on all films produced outside the United States, declaring that Hollywood has been “stolen” by foreign countries.

Speaking on Monday, the US president claimed California — once the beating heart of global cinema — had been “particularly hard hit” and vowed the levy would fix a “never-ending problem.”

The proposal, first floated in May, would represent an unprecedented intervention in the global film industry, raising questions about how such tariffs would be calculated — particularly for productions shot abroad but funded by American studios.

Unclear impact on Hollywood and streaming giants

Trump has not specified when the tariffs would come into effect or whether they would apply to streaming platforms such as Netflix, which rely heavily on international filming locations.

Industry experts say defining an “American-made” movie would be fraught with complications. Films like Wicked (filmed in the UK), Deadpool & Wolverine (shot in Canada), and Gladiator II (filmed in Morocco) were all US studio productions but made largely outside America.

Dan Coatsworth, an investment analyst at AJ Bell, warned:

“The threat of 100% tariffs on movies made outside of the US raises more questions than answers. If costs rise, studios will pass them on to customers, which could hurt demand for streaming and cinema operators.”

Stocks for companies such as Netflix and Disney dipped briefly after Trump’s remarks but quickly rebounded, suggesting investors doubt the policy will materialise.

Canada warns of economic fallout

The Canadian Chamber of Commerce has voiced alarm, stressing that American studios depend on Canadian crews, facilities, and incentives.

“These tariffs risk punishing US studios for filming in Canada by driving up costs, stifling investment, and undermining the competitive advantage our countries have built together,” said Catherine Fortin-LeFaivre, its senior vice president.

She warned the move would “jeopardise thousands of middle-class jobs” on both sides of the border.

Hollywood spending already in decline

The US remains a powerhouse in film production, with $14.5bn spent in 2023. But that figure is down 26% since 2022, as more studios flock to cheaper, incentive-rich destinations in the UK, Canada, Australia, and New Zealand.

The UK government is monitoring developments, with a spokesperson saying the British film industry “employs millions and generates billions” and would be watching “the details of any US tariff closely.”

Meanwhile, Trump has announced a string of other levies, including 100% tariffs on imported branded drugs, 10% on softwood timber, and 25% on kitchen and bathroom furniture — measures that take effect on 14 October.

But his threat to tax foreign-made films has drawn the sharpest spotlight, leaving Hollywood, global partners, and investors scrambling for clarity.