Trump Orders 100% Tariff on Foreign Films
U.S. President Donald Trump has directed federal trade officials to impose a 100% tariff on all movies produced outside the United States and imported into the country, in what he described as an urgent move to revive the struggling American film industry.
In a post shared Wednesday night on his social media platform, Truth Social, Trump said he had instructed the Department of Commerce and the U.S. Trade Representative (USTR) to begin implementing the tariffs immediately.
“The Movie Industry in America is DYING a very fast death,” Trump wrote. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States… WE WANT MOVIES MADE IN AMERICA, AGAIN!”
While the legal and logistical framework for such a tariff remains unclear – given that films are classified as intellectual property rather than physical goods – Trump’s directive signals a potentially dramatic shift in how the U.S. approaches trade in creative industries.
International cities like Toronto, Dublin, and London have become hubs for Hollywood productions, thanks to generous tax breaks and lower production costs. This trend has contributed to a migration of film and television shoots out of the U.S., prompting concern among some lawmakers and industry stakeholders about the economic impact on American jobs and studios.
California Governor Gavin Newsom has already proposed increased tax incentives to lure productions back to Hollywood, highlighting the competitive pressure from foreign film markets.
Trump framed the exodus of film production as both an economic issue and a matter of national security, claiming the influx of foreign-made content represented a “messaging and propaganda” threat to the United States.
Despite his claims, the American film industry is still recovering from the effects of the COVID-19 pandemic, which drastically reduced theatrical releases and shifted consumer behavior toward streaming platforms. While the U.S. box office reached nearly $12 billion in 2018, it plummeted to just over $2 billion in 2020. Even as theaters reopen, domestic ticket sales have yet to return to pre-pandemic levels.
Although American studios still dominate global streaming platforms, many of them have struggled to turn profits in recent years. Only recently have platforms like Disney+ and Max reported their first profitable quarters.
Trump’s proposal to tax foreign films could mark the first time the U.S. attempts to apply tariffs to services or intellectual property in the entertainment sector. Until now, his trade policy has largely focused on physical goods, including steel, aluminum, and automobiles.
If implemented, the move could face legal challenges and opposition from within the entertainment industry, especially given the reliance of U.S. studios on international locations and labor for cost-effective production.
The administration has yet to clarify when or how the tariffs would take effect, or how compliance would be monitored.
