Trump announces 100% Tariff on Foreign Films and Furniture: Movie Industry "Stolen Like Candy from Baby"

Film Industry Tariff Announcement

Trump made the announcement via Truth Social on September 29, 2025, stating "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 specifically criticized California Governor Gavin Newsom, calling him "weak and incompetent" and claiming California has been "particularly hard hit" by the decline in domestic film production.

This marks the first time the US would impose tariffs on a digitally delivered service, as films are now primarily distributed through digital cinema packages and streaming platforms rather than physical film reels. The announcement represents an escalation from Trump's initial May 2025 threat of similar film tariffs.

Implementation Challenges and Legal Questions

The White House has not explained how such tariffs would be enforced or what legal authority would be used for implementation. The proposal raises complex questions as modern films are increasingly produced across multiple countries, with financing, visual effects, and post-production often handled overseas.

The World Trade Organization has maintained a moratorium on customs duties for electronic transmissions since 1998, which the US has supported and is bound by under the General Agreement on Trade in Services. This international framework could complicate Trump's tariff implementation.

Furniture Industry Also Targeted

In a separate Truth Social post, Trump announced "substantial tariffs" on furniture imports, specifically citing North Carolina's furniture industry decline. "In order to make North Carolina, which has completely lost its furniture business to China, and other Countries, GREAT again, I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States," he declared.

The furniture tariffs follow Trump's previous announcement of 50% tariffs on kitchen cabinets and bathroom vanities, plus 30% tariffs on upholstered furniture, set to begin October 1, 2025.

Hollywood Production Crisis Statistics

The US film industry has indeed faced significant challenges in recent years. Film production in America decreased by 26% from 2021 to 2023. According to FilmLA, Los Angeles production dropped 22% in the first quarter of 2025 compared to the previous year, with only 5,295 shoot days recorded.

Feature film production has been particularly affected, with just 451 shoot days reported in the first quarter of 2025 a 29% decline from the previous year. Television production experienced an even steeper decline, with TV shoot days plunging nearly 30% and only 13 television pilots filmed in early 2025, the fewest ever recorded.

Economic Impact and Industry Response

Despite production challenges, American films remain a major export. The Motion Picture Association reports US films earned $22.6 billion in exports globally in 2023, generating a $15.3 billion trade surplus. This represents 6% of the total US trade surplus in services.

Major studios including Warner Bros Discovery, Paramount, and Netflix have not responded to requests for comment about the proposed tariffs. In premarket trading following Trump's announcement, Netflix and Warner Bros Discovery shares declined 1% and 0.7% respectively.

California's Response and Competitive Measures

Governor Gavin Newsom criticized Trump's proposal, posting on social media that Americans are "already spending more on coffee, toys, electricity, cars and flights. Now Trump wants to increase taxes just to watch movies". Newsom characterized this as "PAY MORE AND ENJOY NOTHING. That's Donald Trump's America".

California has been working to counter production flight through expanded tax incentives. In July 2025, Newsom signed legislation increasing the state's film and television tax credit program from $330 million to $750 million annually, more than doubling available funding.

Global Competition Context

Countries like Canada, the UK, and Australia have attracted Hollywood productions through competitive tax incentives and lower production costs. Canada and the UK offer significant tax breaks for film production, leading many American studios to shoot internationally despite higher logistics costs.

The Canadian Chamber of Commerce expressed "serious concern" about the proposed tariffs, noting that American production companies rely heavily on Canadian resources, crews, and talent. Officials warned the tariffs could "diminish both economies" and threaten "thousands of middle-class jobs".

Trump has appointed actors Mel Gibson, Jon Voight, and Sylvester Stallone as "special ambassadors" to Hollywood to help revive American film production.