Trump orders 100% tariff on foreign-made movies to save ‘dying’ Hollywood

A significant announcement regarding the US film industry emerged recently when US President Donald Trump declared a 100% tariff on movies produced outside the country. The President stated this action was necessary because the American movie industry was experiencing a "very fast death," primarily attributed to incentives offered by other nations to attract filmmakers.

In a social media post, Trump characterized this situation as a "concerted effort by other Nations," framing it as a "National Security threat" and a form of "messaging and propaganda."

To address this, Trump directed relevant government agencies, including the Department of Commerce, to immediately begin implementing the 100% tariff on all foreign-produced films entering the United States. He explicitly stated the objective: "WE WANT MOVIES MADE IN AMERICA, AGAIN!" Commerce Secretary Howard Lutnick publicly acknowledged the directive, stating they were "on it."

However, immediate details surrounding the practical implementation of the tariff were scarce. Questions remain unanswered, such as whether the tariff would apply to content shown in theaters, released on streaming services, or both. It was also unclear how the tariff would be calculated – whether based on production costs or eventual box office earnings. Hollywood executives were reportedly trying to understand the implications following the announcement.

This development comes amidst a long-standing trend of movie and television production moving away from Hollywood locations. Tax incentives offered by governments worldwide have made filming significantly cheaper in other regions, aiming to capture a portion of the global content production spending, predicted to reach $248 billion in 2025.

Major media companies, including giants like Walt Disney, Netflix, and Universal Pictures, frequently film in countries such as Canada and Britain. Research indicates that in 2023, approximately half of the spending on projects with budgets over $40 million occurred outside the US.

The impact on Hollywood's home base in Los Angeles has been noticeable, with local film and television production declining by almost 40% over the past decade, according to one non-profit tracking the data. Recent concerns, including the January wildfires, have also added to worries that producers might continue to seek locations outside Los Angeles.

A survey of executives even ranked California as the sixth most preferred location for filming over the next two years, placing it behind international hubs like Toronto, Britain, Vancouver, Central Europe, and Australia.

In response to these trends, Hollywood producers and labor unions have been actively urging California Governor Gavin Newsom to enhance the state's own tax incentives to better compete with these global filming destinations.

The proposed movie tariff aligns with previous trade actions taken by the administration. Experts in trade policy have voiced concerns, with one former senior Commerce official suggesting that potential retaliation from other nations could be highly detrimental to the US film industry, arguing that the US has more to lose than gain and that making a national security case for movies would be challenging.