(qlmbusinessnews.com . Tue 30th Sep, 2025) London, UK —
How Trump's Tariff Plan Could Affect Netflix and International Movie Productions
Donald Trump has once again voiced his intention to introduce a 100% tariff on all non-US movies, alleging that the American film industry has been “purloined” by other nations.
Speaking on Monday, he highlighted California's significant suffering due to this issue and stated that the proposed levy would “address this perennial, unresolved problem”.
Back in May, the US President mentioned he would engage with Hollywood chiefs about his scheme to kickstart the imposing of the levy, asserting that the US's cinema sector is enduring “a very swift demise”.
These comments were made as Trump disclosed a new series of tariffs last week, which included a 100% tax on all imported branded or patented medicines, alongside 50% tariffs on kitchen and bathroom cabinetry.
Via his Truth Social platform, Trump remarked: “Our film production enterprise has been pilfered from the United States of America by other nations, akin to taking ‘candy from a baby.'
“Particularly, California, under its feeble and incapable Governor, has suffered immensely!”
He clarified that the 100% tariff would affect “every movie produced outside the United States”.
No specific timeline for the imposition of this tariff was provided by Trump. The White House has yet to respond to requests for comments.
Details remain unclear regarding whether these tariffs would also apply to streaming service films, such as Netflix, in addition to cinema screenings, and the method for calculating these tariffs.
The Canadian Chamber of Commerce expressed its “deep concerns” over the levy, pointing out the reliance of American production studios on Canadian venues, crews, and talent to create Hollywood films.
Catherine Fortin-LeFaivre, a high-ranking official at the Canadian Chamber of Commerce, emphasised: “Such tariffs would unfairly penalise US studios for filming in Canada, escalating costs, hindering investments, and damaging the synergistic relationship built by our nations.”
She warned that the tariff could “detriment both economies” and risk “thousands of middle-class jobs”.
Dan Coatsworth, an investment analyst, pondered the feasibility of such a tax, considering tariffs typically concern tangible goods and highlighted the growing trend of filmmakers shooting abroad due to more attractive tax incentives.
“The announcement of 100% tariffs on films made outside the US introduces a plethora of uncertainties,” he commented.
“The allure for filmmakers of tax reliefs available overseas has eclipsed the appeal of Los Angeles’s movie industry.”
Coatsworth raised the difficulty in defining a movie as American-made, especially if a film is shot in the US but involves foreign actors, directors, or financing.
“Therefore, the mechanisms for implementing such a levy by Trump are unclear,” he added.
“In theory, mandating the production of movies in the US could inflate costs, which content producers would then transfer to consumers, potentially dampening demand for streaming services and cinemas.”
At present, investors seem to disregard this as an imminent threat. Shares of companies like Netflix and Disney experienced a brief dip followed by a recovery.
Despite international locales being favoured for several recent major US studio productions, such as Deadpool & Wolverine, Wicked, and Gladiator II, the US continues to hold sway as a global filmmaking heavyweight. This is according to ProdPro, a movie industry research entity, which noted a $14.54bn (£10.94bn) production spending in the US last year, albeit a 26% decrease since 2022.
Countries like Australia, New Zealand, Canada, and the UK have seen a surge in production spending since 2022.
The Reporters has come to understand that the UK government is awaiting further details on the US's proposed tariff and its implications for the British cinema sector.
A spokesperson from the Department for Business & Trade affirmed the significance of the UK film industry, stating it “employs millions and generates billions for our economy”.
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