President Donald Trump said on Monday that he would impose a 100% duty on all films produced abroad, which is then sent into the United States, repeating a threat made in May that would increase Hollywood’s global business model.
The step signalizes Trump’s willingness to expand protectionist trade policies to cultural industries, which increases the uncertainty of studios, which is highly dependent on cross-border co-production and international box-office revenue.
“Our film production has been stolen from the United States of America by other countries, like stealing sweets from a baby,” Trump said in a post about his truth social.
However, it was not immediately clear what legal authority Trump would use to impose a 100% duty on foreign films.
The White House did not immediately respond to a Reuters request for comment on how the tariffs would be implemented.
Top US Studios Warner Bros Discovery WBD.O, Paramount Skydance psky.o and Netflix nflx.o also did not immediately respond to requests for comment. Comcast cmcsa.o refused to comment.
“There is too much uncertainty and this latest step raises more questions than answers,” said PP foresight analyst Paolo Pescatore.
“For now, as things stand, costs are likely to rise, and this will inevitably be transferred to consumers,” he said.
The president had first floated the idea of a movie sky in May, but offered few details, leaving entertainment staff who were unsure whether it would apply to specific countries or all imports.
Shares of Paramount Skydance PSKY.O and Warner Bros Discovery WBD.O were 2.1% and 1.3% respectively.
From Australia to Canada
Studio leaders told Reuters earlier this year that they were “flummoxed” by how a movie sky can be enforced, given that modern films often use production, financing, post-production and visual effects spread across several countries.
Hollywood has increasingly depended on overseas production nodes such as Canada, Britain and Australia, where tax incentives have attracted big-budget shoots for movies ranging from superhero-blockbusters to streaming dramas.
At the same time, co-productions with foreign studios have become more common, especially in Asia and Europe, where local partners provide funding, access to markets and distribution networks.
Industry leaders also warn that a broad customs can affect the thousands of US workers employed by overseas shots from artists with visual effects to production herds whose work is often coordinated across several countries.
