On Sunday, former U.S. President Donald Trump announced plans to impose a 100% tariff on movies produced outside the United States, arguing that foreign incentives were threatening the domestic film industry.
"The American movie industry is dying a very fast death," Trump wrote on Truth Social. "This is a coordinated effort by other nations and represents a national security threat. It's not just about money—it's also about messaging and propaganda."
Trump said he had instructed federal agencies, including the Department of Commerce, to immediately begin implementing the new tariffs on all imported films.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” he added.
Commerce Secretary Howard Lutnick responded on X, formerly Twitter, simply stating, “We’re on it.”
Details about the scope and enforcement of the tariffs remain unclear. It is not yet known whether the policy would affect movies distributed via streaming platforms as well as those shown in theaters, or how the tariffs would be calculated—by production costs, revenue, or another metric.
Executives in Hollywood were scrambling Sunday night to understand the implications. The Motion Picture Association, which represents major studios, has not yet commented.
In January, Trump appointed actors Jon Voight, Sylvester Stallone, and Mel Gibson to lead efforts to revitalize the U.S. film industry, pledging to make Hollywood "bigger, better, and stronger than ever before."
Film and television production has increasingly moved abroad in recent years, drawn by generous tax incentives and financial rebates offered by other countries. Governments around the world are competing for a share of the $248 billion in global content production spending projected for 2025, according to Ampere Analysis.
Major studios including Disney, Netflix, and Universal frequently shoot in countries like Canada and the UK, where costs are often lower.
Following Trump’s announcement, officials in Australia and New Zealand expressed support for their local film industries. Both countries have hosted major international productions, including Marvel films and the “Lord of the Rings” trilogy.
According to research firm ProdPro, about half of U.S. production spending on projects with budgets over $40 million went overseas in 2023. Meanwhile, FilmLA reports that film and television production in Los Angeles has declined nearly 40% over the past decade.
January wildfires in Southern California added to industry anxiety, as many production workers consider relocating rather than rebuilding.
A recent ProdPro survey ranked California only sixth among preferred filming locations for the next two years—trailing behind Toronto, the UK, Vancouver, Central Europe, and Australia. Industry leaders and unions are urging California Governor Gavin Newsom to expand state tax credits to keep productions in-state.
Trump's proposed movie tariff is the latest in a string of protectionist trade moves during and following his presidency, many of which have rattled financial markets and raised fears of economic fallout.
William Reinsch, a former senior Commerce Department official and current fellow at the Center for Strategic and International Studies, warned that retaliatory actions from other countries could severely damage the U.S. film industry.
“The retaliation will kill our industry. We have a lot more to lose than to gain,” Reinsch said. “It’s going to be hard to argue that movies represent a national emergency.”
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