WASHINGTON – President Donald Trump repeated his threat to impose 100% tariffs on movies made outside the United States, a strategy experts have questioned because of uncertainties about which movies would be targeted and how fees would be collected.
"Our movie making business has been stolen from the United States of America, by other Countries, just like stealing 'candy from a baby,'" Trump said in a social media post Sept. 29. "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."
Trump imposed worldwide tariffs in August, to raise money on imports from other countries and force foreign governments to the negotiating table for better trade deals. But Trump’s authority to impose the tariffs has been challenged in court, and the Supreme Court will hear arguments Nov. 5 about whether they are authorized.
Movie industry experts questioned in May, after Trump first threatened tariffs on movies made abroad, how the fees would be levied, such as on production costs or ticket sales.
"There is too much uncertainty, and this latest move raises more questions than answers," PP Foresight analyst Paolo Pescatore told Reuters. "For now, as things stand, costs are likely to increase, and this will inevitably be passed on to consumers."
Shares of Paramount Skydance were down 2.1% and Warner Bros Discovery were down 1.3% after the announcement.
Rep. Laura Friedman, D-California, a former film producer who represents major Hollywood studios from her Glendale district, said a film tax credit would work better to preserve industry jobs than tariffs that could drive up costs.
"I’m relieved President Trump recognizes that we are losing a signature American product: the domestic film & TV industry," Friedman said in a statement. "However, his 100% tariff on foreign films will raise costs for consumers. As the representative of nearly every major producer in Hollywood and a former film producer, I know what will work, without harming consumers: a national film tax credit."
Rep. Ted Lieu, D-California, told reporters he co-authored the state tax credit for movies when he was in the state legislature but that tariffs would drive up costs to ticket buyers.
"It just seems like another random idea that he put out there with no thought about how it would actually be implemented," Lieu said. "If it was implemented, it would increase consumer costs on movies."
This story has been updated to add new information.
Contributing: Reuters
This article originally appeared on USA TODAY: Trump repeats threat to impose 100% tariffs on foreign-made movies
Reporting by Bart Jansen, USA TODAY / USA TODAY
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