U.S. President Donald Trump announced a 100 percent tariff on movies produced outside the United States, stating that the American film industry was facing a “very fast death” due to incentives offered by other countries to attract filmmakers.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda,” Trump wrote on Truth Social.
Trump indicated that he was authorizing relevant government agencies, such as the Department of Commerce, to begin the process of imposing a 100 percent tariff on all films produced abroad that are imported into the United States. He declared: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Commerce Secretary Howard Lutnick responded on X: “We’re on it.” However, neither Lutnick nor Trump provided specifics on how these tariffs would be implemented.
Uncertainty surrounding tariff application
It remains unclear whether the tariffs would apply to movies available on streaming services as well as those screened in theaters, or if they would be based on production costs or box office revenue. Hollywood executives were busy trying to sort out these details on Sunday night, while the Motion Picture Association, which represents major studios, had no immediate comment.
For years, movie and TV production has been leaving Hollywood for locations with tax incentives that reduce filming costs, Reuters reported. Governments worldwide have ramped up credits and cash rebates to attract productions, hoping to capture a greater share of the $248 billion that Ampere Analysis predicts will be spent globally on content production in 2025.
All major media companies, including Walt Disney, Netflix, and Universal Studios, have been filming overseas in countries such as Canada and Britain.
Leaders in Australia and New Zealand responded to Trump’s tariff announcement by advocating for their local industries. Notably, some Marvel superhero movies have been filmed in Australia, while New Zealand served as the backdrop for “The Lord of the Rings” films.
Shifts in U.S. production spending
In 2023, about half of the spending by U.S. producers on movie and TV projects with budgets exceeding $40 million went outside the U.S., according to research firm ProdPro. Film and television production has declined by nearly 40 percent over the past decade in Los Angeles, Hollywood’s home city, as reported by FilmLA, a non-profit organization tracking regional production.
Concerns intensified following the January wildfires, which raised fears that producers might look beyond Los Angeles, leading camera operators, costume designers, sound technicians, and other behind-the-scenes workers to relocate rather than rebuild in their neighborhoods.
Potential consequences of Trump’s proposed tariff
A ProdPro survey revealed that California is now the sixth most preferred location for filming over the next two years, trailing behind Toronto, Britain, Vancouver, Central Europe, and Australia. Hollywood producers and labor unions have been urging Governor Gavin Newsom to enhance the state’s tax incentives to better compete with other filming locations.
Trump’s proposed movie tariff follows a series of trade conflicts initiated by his administration, which have disrupted markets and raised concerns about a potential U.S. recession. Former senior Commerce official William Reinsch warned that retaliation against Trump’s film tariffs could devastate the industry, Reuters reported.
“The retaliation will kill our industry. We have a lot more to lose than to gain,” he stated, noting the difficulty in making a case for a national security or national emergency related to movies.
Trump intensifies tariffs on China
Trump has targeted China most aggressively with his tariff strategy, imposing import taxes as high as 145 percent on goods from the country. His administration announced last month that, when the new tariffs are combined with existing ones, the total levies on certain Chinese products could soar to 245 percent.
In retaliation, Beijing has implemented a 125 percent import duty on goods from the United States. Meanwhile, other countries currently face a blanket U.S. tariff of 10 percent, which is set to remain in effect until a pause on higher levies expires in July.
Speaking to reporters aboard Air Force One on Sunday, Trump mentioned that he was in discussions with multiple countries, including China, regarding trade agreements. However, he clarified that he had no plans to speak with his Chinese counterpart, Xi Jinping, this week—contrary to earlier reports suggesting that Washington had reached out to Beijing about potential trade talks.
When asked if any trade agreements might be announced this week, Trump indicated that this could “very well be” the case, though he provided no specific details. Earlier, he hinted at a potential willingness to lower tariffs on China.
