President D.Trump announced strong tax imposition to revive the film and furniture industries.

According to a VNA reporter in Washington, on September 29, US President Donald Trump said he would impose a 100% tax on all foreign-produced films imported into the US, repeating a threat he made in May that could upset Hollywood's global business model. The statement was made on the social network Truth Social.

The move shows President Trump is willing to extend his protectionist trade policies to the cultural sector, raising uncertainty for film studios that rely heavily on cross-border co-productions and international box office revenue.

However, it is not yet clear what legal basis allows the White House to impose this tax, as well as how it will be implemented. The White House and major US film studios such as Warner Bros Discovery, Paramount Skydance, and Netflix have not commented, while Comcast declined to respond.

The idea of taxing imported films was first raised by President Trump in May, but without providing specific details, leaving the film industry unclear whether it would apply to certain countries or all foreign films.

Shares of Paramount Skydance and Warner Bros Discovery fell 2.1% and 1.3%, respectively, on September 29.

Paolo Pescatore of PP Foresight said there was still much that was unclear and the move raised more questions than it answered. However, he said, “in the short term, costs will definitely increase and consumers will be the ones to bear the brunt.”

Film studio executives say such a tax is unlikely to be feasible, as film production today often spans multiple countries, from finance, post-production to special effects.

Hollywood is increasingly reliant on production hubs in Canada, the UK and Australia, which offer tax incentives for blockbuster projects. Co-productions with foreign studios, especially in Asia and Europe, are also increasingly common, thanks to funding, market access and distribution networks.

Industry insiders warn that a broad tariff could affect thousands of American workers on overseas projects, from special effects technicians to film crews.

According to the Motion Picture Association of America, the Hollywood industry generates more than 2.3 million jobs and $279 billion in revenue in 2022.

However, after Hollywood strikes and the impact of the COVID-19 pandemic, which changed Americans' movie-watching habits from theaters to at-home viewing, the industry has struggled to regain momentum.

President Trump's announcement came shortly after he announced new tariffs on brand-name pharmaceuticals, furniture and heavy trucks, ranging from 25% to 100%.

Also on September 29, President Trump said he would soon announce details on import taxes on furniture, after announcing a tax rate of up to 50% on this item.

Specifically, last week, Mr. Trump announced a 50% tax on kitchen cabinets and bathroom sinks, and a 30% tax on upholstered furniture products, expected to take effect from October 1.

Experts say these import taxes will make it difficult for businesses to keep prices stable, while many industry leaders are concerned about limited production capacity in the US.

With prices of everything from clothes to televisions rising in recent months, manufacturers and retailers have been grappling with a constantly changing tariff environment while also finding ways to offset escalating raw material and supply chain costs./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/tong-thong-dtrump-tuyen-bo-ap-thue-manh-de-phuc-hoi-nganh-dien-anh-va-noi-that-post1064937.vnp