Trump Imposes 100% Tariff on Foreign Movies to Save 'Dying' Hollywood

U.S. President Donald Trump announced a 100% tariff on movies produced outside the United States, citing Hollywood’s declining production as a “very fast death.”

In a Truth Social post, he attributed the trend to international incentives attracting filmmakers, describing it as a “concerted effort by other Nations and, therefore, a National Security threat.”

He further stated, “It is, in addition to everything else, messaging and propaganda,” and declared:

Commerce Secretary Howard Lutnick responded on X, stating, “We're on it.”

Implementation Details Remain Uncertain

The tariff’s scope is unclear, with no details on whether it applies to streaming platforms, theatrical releases, or how it will be calculated.

The Motion Picture Association, representing major studios, did not immediately comment.

Hollywood executives are working to clarify the policy’s impact, as U.S. studios like Walt Disney, Netflix, and Universal Pictures often film in countries such as Canada, the UK, and Australia, where tax credits reduce costs.

Timothy Richards, founder of European cinema chain Vue, questioned how a U.S. film would be defined, asking, “Is it where the money comes from? The script, the director, the talent, where it was shot?”

International and Domestic Concerns

The announcement prompted global reactions. In the UK, Bectu union head Philippa Childs warned, “These tariffs, coming after COVID and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering.”

Australia’s Home Affairs Minister Tony Burke committed to supporting the local film industry, while New Zealand’s Prime Minister Christopher Luxon promised to advocate for the sector.

In the U.S., Hollywood faces challenges, with Los Angeles reporting a 40% drop in film production over the past decade, according to FilmLA.

NPR film critic Eric Deggans cautioned that retaliatory tariffs could reduce U.S. films’ overseas earnings, stating, “It may create a situation where the tariffs in America are causing more harm than good.”

Hollywood’s Ongoing Struggles

In January, Trump appointed Jon Voight, Sylvester Stallone, and Mel Gibson to promote Hollywood’s recovery, describing it as a “great but very troubled place.”

With global production spending expected to reach $248 billion in 2025, per Ampere Analysis, and half of U.S. high-budget projects filmed abroad, per ProdPro, the tariff seeks to curb this shift.

However, former Commerce official William Reinsch warned, “The retaliation will kill our industry. We have a lot more to lose than to gain.”