Even the movie industry is not spared from President Donald Trump‘s protectionist tariffs trade policy.
On Sunday, the president announced a 100% tariff on movies produced outside the United States, arguing that foreign production incentives threaten the American film industry.
Trump made the declaration on Sunday via his Truth Social platform, stating that foreign governments are deliberately undermining Hollywood.
“This is a concerted effort by other nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda,” he wrote.
He ended the post with, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Government Agencies Ordered to Begin Tariff Process
Trump revealed he has authorized government agencies, including the Department of Commerce, to implement the tariffs immediately.
“I have directed the Department of Commerce to begin the process right away,” he stated.
Commerce Secretary Howard Lutnick responded on X with a brief message: “We’re on it.”
However, neither Trump nor Lutnick provided specific details on how the tariffs would be structured. Industry experts are questioning whether they will apply to streaming services as well as theatrical releases and how they will be calculated.
Hollywood’s Production Shift
The announcement follows Trump’s appointment of Hollywood figures Jon Voight, Sylvester Stallone, and Mel Gibson in January to lead efforts to revitalize American film production.
In recent years, major studios have moved productions overseas to take advantage of tax credits and cash rebates offered by countries like Canada, Britain, and Australia.
Research firm ProdPro reports that in 2023, half of the spending on movies and TV projects with budgets exceeding $40 million went outside the U.S.
Los Angeles, once the heart of American filmmaking, has seen nearly a 40% drop in production over the past decade, according to FilmLA.
A recent survey ranked California as only the sixth most preferred filming location, behind Toronto, Britain, Vancouver, Central Europe, and Australia.
The impact of Trump’s tariffs on major studios like Walt Disney, Netflix, and Universal Pictures remains uncertain. Industry insiders are awaiting further details on how the policy will be enforced.
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