President Trump is once again threatening to impose tariffs on film productions outside the United States, he shared on the Truth Social platform Monday morning.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” the President wrote. “California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! President DJT”
Trump made a similar announcement back on May 4, in which he proposed 100% tariffs on all movies made outside the U.S., deeming the increased move of productions abroad a “national security threat” and an effort to undermine American businesses. It’s not clear what reactivated the threat, though moments later on the same Truth Social platform, he motioned toward “substantial Tariffs on any Country that does not make its furniture in the United States.” When Trump threatened tariffs this past Spring, the White House shortly after walked back his remarks.
Though filmmaking is increasingly moving overseas at an alarming speed and to places like Hungary, which offer large tax credits, tariffs such as these would likely only encourage more decampment of production, as IndieWire previously reported. There remains the question of can Trump even do this? How do you tax something that exists as a digital file, or an idea, and is not a physical object or product, and how will it be enforced?
There’s also the even simpler question of… how do you shoot in the United States to depict a foreign country when your American-made movie isn’t actually set here or calls for a sequence shot abroad?
Last time around, Trump’s threat against the film industry didn’t amount to much. Also earlier this year, Governor Newsom (whom Trump is referring to here) signed a $750 million tax credit for film and TV made in California to help keep productions in the United States. He also suggested to Trump collaborating on a national federal incentive that would offer similar benefits, though no formal proposal has occurred.