Films made outside US to face 100% tariff

US President Donald Trump on Monday announced 100 per cent tariffs on movies made outside the country, in a move likely to impact the Indian film industry.

“The movie-making business has been stolen from the US by other Countries, just like stealing ‘candy from a baby’,” Trump posted on Truth Social on Monday.

He further said California had been particularly “hit hard”. Blaming California Governor Gavin Newsom, who is a democrat, Trump called Newsom “weak and incompetent”.

“To solve this never-ending problem, I will be imposing a 100 per cent Tariff on any and all movies that are made outside of the United States,” Trump added.

The move comes days after the Trump administration imposed tariffs on pharmaceutical products. It is likely to impact the Indian film industry, which produces movies in several languages. These movies are also popular among the Indian diaspora in the US.

Trump further said details were forthcoming on tariffs for furniture imports, after announcing levies of up to 50% on such goods last week.

“I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States. Details to follow,” Trump said in a social media post, noting lost business in North Carolina.

Trump has announced a 50% tariff on imported kitchen cabinets and vanities, along with a 30% levy on upholstered furniture, which are set to take effect on October 1.

The import duties will make it more challenging for companies to hold down prices, while executives in the industry have raised concerns over the lack of manufacturing capacity in the US, as the country relies heavily on imports from China, Mexico and Vietnam.

Chief executives at Williams-Sonoma and RH, formerly known as Restoration Hardware, have both raised concerns about higher tariffs in recent earnings calls.

Prices for everything from clothes to TVs have gone up in recent months as manufacturers and retailers struggle with the ever-changing tariff environment while also trying to offset rising commodity and supply-chain costs.