President Donald Trump said Monday that he would impose a 100% rate in all films produced abroad that are then sent to the United States, repeating a threat made in May that he would change the Hollywood global business model.
The step indicates Trump’s will to extend commercial protectionist policies to cultural industries, which increases uncertainty for studies that depend largely on cross -border co -productions and international box office income.
“Our films manufacturing business has been stolen from the United States of America, by other countries, as well as stealing sweets from a baby,” Trump said in a publication about his social truth.
However, it was not clear immediately which legal authority would use Trump to impose a 100% rate in foreign manufacturing films.
The White House did not immediately respond to a request for comments about how tariffs would be implemented.
Top Us Studios Warner Bros Discovery WBD.O, Paramount Skydance Pick.y Netflix NFLX.O also did not respond immediately to comments requests. Comcast CMCSA.O declined to comment.
“There is too much uncertainty, and this last movement raises more questions than answers,” said PP Foresight analyst Paolo Pescatore.
“For now, as things are, costs are likely to increase, and this will inevitably be transmitted to consumers,” he said.
The president had first raised the idea of a film rate in May, but offered few details, leaving entertainment executives without being sure whether it would apply to specific countries or all imports.
The actions of Paramount Skydance Pick.o and Warner Bros Discovery WBD.O fell 2.1% and 1.3%, respectively.
From Australia to Canada
Study executives told Reuters earlier this year that they were “bewildered” by how a film rate could be applied, since modern films often use production, financing, postproduction and visual effects distributed in multiple countries.
Hollywood has been increasingly trusted in production centers abroad such as Canada, the United Kingdom and Australia, where tax incentives have attracted large -budget sessions for films ranging from superhero box office successes to transmission dramas.
At the same time, co -productions with foreign studies have become more common, particularly in Asia and Europe, where local partners provide financing, access to markets and distribution networks.
Industry executives also warn that a broad tariff could affect the thousands of US workers used in outbreaks abroad, from visual effects artists to production teams, whose work is often coordinated in multiple countries.
