US President Donald Trump says he will be imposing a 100 per per cent tariff "on any and all movies that are made outside of the United States".
Trump did not specify when or how the tariff could be enacted.
If Trump follows through with his threat, it would mark the first time he's essentially imposed a tariff on a service rather than a good.
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The president initially threatened a 100 per tariff on foreign-produced movies in May, arguing that other countries offer tax incentives that have drawn filmmakers abroad. In his Truth Social post on Monday, he singled out California, saying the state "has been particularly hard hit!"
The state, meanwhile, has proposed and put in effect many tax incentives, as have other American cities.
Hollywood was completely caught off guard when Trump first previewed the tariff in May.
"On first blush, it's shocking and would represent a virtually complete halt of production," one industry insider told CNN at the time.
"But in reality, he has no jurisdiction to do this and it's too complex to enforce."
American actors and directors generally prefer to work close to home.
"[But] the fact is, it's cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper," Jay Sures, vice chairman of United Talent Agency, told CNN in May.
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Share of Netflix opened down 1 per cent on Monday morning following Trump's post, while other movie-related companies, including AMC and The Walt Disney Company, opened higher.
Although Hollywood is far from devastated, movie tickets are down in the US as the number of major pictures hitting theatres has tumbled since the pandemic — and consumers have shifted their viewing habits to streaming platforms to watch at home.
US box office gross topped out at just under $US12 billion ($18.26 billion) in 2018 before nosediving to just over $US2 billion ($3.04 billion) in 2020, when many theatres were shut down because of COVID-19. Although theatres have rebounded, the number of releases is about half of what it was in 2019, and the total domestic box office gross hasn't eclipsed $US9 billion since.
Warner Bros Discovery, which was CNN's parent company until a recent split, has raked in $US4 billion in global box office sales so far this year, the first studio to hit that level.
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More tariffs in the works
Beyond films, Trump is readying up a slew of other tariffs.
As of Wednesday, the administration is set to impose a 100 per cent tariff on branded drugs, with some exceptions; a 25 per cent tariff on heavy trucks; a 50 per cent tariff on kitchen cabinets and vanities; as well as a 30 per cent tariff on upholstered furniture.
In a separate social media post on Monday, Trump said he plans to impose a "substantial" tariff on all furniture imported into the United States.
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