Trump imposes tariffs on 'foreign' films, putting Hollywood into tailspin

US President Donald Trump has opened a new front in his ongoing tariff disputes — this time targeting the film industry. In a passionate statement posted on Truth Social on Sunday, the former president announced a 100 percent tariff on all movies made outside the United States, contending that foreign governments are undermining the American film sector through aggressive incentives and subsidies.

Describing it as a “National Security threat,” Trump stated that this is “a concerted effort by other Nations” to take over U.S. productions and use storytelling as “messaging and propaganda.” He asserted that he had instructed the Commerce Department and the U.S. Trade Representative to start implementing the tariffs right away. “We want movies made in America, again!” he wrote in all caps. 

Nevertheless, no specific details were given on how or when these tariffs would be put into action. It is also uncertain whether the tax would affect streaming content, theatrical releases, or solely films produced by non-American studios. The Motion Picture Association has not yet responded, while Hollywood executives were reportedly grappling to understand the implications. 

The announcement arrives at a challenging moment for the U.S. film industry, which has already experienced a 40 percent decline in production in Los Angeles over the last ten years, according to FilmLA. An increasing number of Hollywood studios including Disney, Universal, and Netflix — are now shooting films in countries like Canada, the UK, Australia, and New Zealand, attracted by generous tax incentives and production advantages. 

Research indicates that about half of all U.S. film and TV expenditures on major projects in 2023 were spent overseas. Furthermore, California has slipped to sixth among the most favored global filming locations  trailing Toronto, London, Vancouver, Central Europe, and Australia. 

Governments in Australia and New Zealand reacted quickly to Trump's announcement. Australia’s Home Affairs Minister Tony Burke expressed that his government would support the Australian screen industry “unequivocally.” New Zealand Prime Minister Christopher Luxon mentioned that his government was awaiting more information but stressed their continued advocacy for their domestic film sector. 

This is not the first occasion Trump has connected culture with politics. In January, he appointed Jon Voight, Sylvester Stallone, and Mel Gibson as “special envoys” to help rejuvenate Hollywood, which he referred to as “a great but very troubled place.” Their objective? To restore Hollywood “back—bigger, better, and stronger than ever before!” 

However, the proposed tariffs have drawn caution from trade specialists. William Reinsch, a former senior Commerce Department official, warned that retaliation from other nations could severely damage Hollywood exports. “The retaliation will kill our industry. We have a lot more to lose than to gain,” he remarked, doubting that a national security argument would be sustainable.

The consequences may already be in motion. In April, China the world’s second-largest film market — reduced its quota for U.S. films, citing American tariff misuse. The China Film Administration cautioned that these actions would tarnish the reputation of American films among local viewers and further diminish their import rates.

As Trump intensifies his protectionist economic strategy with certain tariffs on Chinese goods reaching as high as 245 percent, the global entertainment sector is being drawn into a tense trade conflict. Whether this policy revitalizes domestic filmmaking or further isolates Hollywood remains to be determined