Trump Announces 100% Tariff on Foreign Films, Citing National Security and Industry Collapse
In a dramatic move that could shake the global film industry, former U.S. President Donald Trump announced on Sunday a 100% tariff on all movies produced outside the United States, declaring it a necessary measure to save what he called a "dying" American movie industry.
“This is a concerted effort by other Nations and, therefore, a National Security threat,” Trump wrote on Truth Social. “It is, in addition to everything else, messaging and propaganda. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
According to Trump, the U.S. Department of Commerce and other relevant agencies have been ordered to immediately begin implementing the tariffs. Commerce Secretary Howard Lutnick confirmed the directive on X (formerly Twitter), stating, “We’re on it.”
However, the announcement has left major questions unanswered. Neither Trump nor Lutnick offered details about how or when the tariff would be enforced. Industry insiders are scrambling to determine whether the measure would apply to digital streaming content as well as theatrical releases—and whether the tariff would be based on production costs, gross revenue, or another metric altogether.
Hollywood in Uncertainty
Executives across the entertainment industry were caught off guard. The Motion Picture Association, which represents leading studios such as Disney, Warner Bros, and Universal Pictures, declined to comment immediately.
The announcement comes amid a long-running trend of film and television production leaving Hollywood in favor of international locations offering lucrative tax credits and cash rebates. Countries like Canada, the UK, New Zealand, and Australia have all successfully lured U.S. productions with these incentives.
Ampere Analysis predicts that $248 billion will be spent globally on content production in 2025. The U.S. share of that budget has been shrinking, as studios seek cost-effective international shoots. Notably, major franchises like Marvel films and The Lord of the Rings have been filmed in Australia and New Zealand, respectively.
Global Backlash Builds
Trump’s announcement sparked swift reactions from global leaders and unions. Officials in Australia and New Zealand vowed to protect their local film industries. Meanwhile, Bectu, the UK’s entertainment union, urged the British government to respond decisively.
“Coming after COVID and the recent slowdown, these tariffs could deal a knock-out blow to an industry that is only just recovering,” said Bectu head Philippa Childs.
Stocks in major media companies including Disney, Paramount Global, Warner Bros Discovery, and Amazon.com dropped in early trading on Monday as markets digested the potential implications of the policy.
Trump’s Hollywood Dream Team
This isn’t Trump’s first foray into the world of entertainment reform. In January, he appointed Hollywood legends Jon Voight, Sylvester Stallone, and Mel Gibson to lead a task force aimed at revitalizing the American film industry—one he promises will return “bigger, better, and stronger than ever before.”
Whether Trump’s aggressive trade strategy will achieve that goal—or spark a global trade dispute—remains to be seen. For now, Hollywood is holding its breath.