Los Angeles, May 5 (UNI) US President Donald Trump announced a 100% tariff on all movies produced outside the United States, calling foreign films a threat to the American film industry and national security.
In a post on Truth Social, Trump argued that foreign countries are offering attractive incentives to lure Hollywood productions away from the US, which he believes is hurting the industry and even threatening national security, and labelled imported films as vehicles for "propaganda”, as per a report by VARIETY.
“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. Hollywood, and many other areas within the U.S.A., are being devastated. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
The announcement sent studio executives scrambling, with emergency consultations reportedly underway across major production houses. Industry insiders are seeking clarity on whether films that are already completed or those mid-production abroad will be exempt. There is also widespread concern over how such a measure would impact high-budget American franchises that are partially or entirely overseas including 'Avatar', 'The Avengers' and 'Mission: Impossible'. These films are often made abroad because of lower production costs or exotic locations. There was also confusion about why the president has singled out movies, while not mentioning television production.
As Trump’s social media comment suggests, many Hollywood productions have moved to Canada and overseas to countries including the UK, Australia, New Zealand and Hungary because they offer compelling financial incentives that help lower budgets. But movies also shoot internationally because they want to film in exotic locations, something that applies to globe-trotting franchises such as James Bond and 'Fast and Furious'.
Trump's timing has further complicated matters, as his pronouncement comes mere days before the Cannes Film Festival, a vital marketplace for transnational film deals. Studios and international partners worry the proposal could complicate deals and distribution abroad.
Although Trump claims that Hollywood is down for the count, 2025 has actually seen a rebound in box office numbers since last year. Overall domestic revenues are up 15.8% head of 2024, though still 31% behind 2019. Hits like 'A Minecraft Movie', 'Sinners' and 'Thunderbolts' bring hope of closing the gap.
Production, however, has struggled to come back forcefully after the 2023 actors and writers strikes. Forty percent fewer films and TV shows have been shot in the United States since a deal between the unions and the studios was reached. At the same time, media conglomerates have instituted widespread cost-cutting measures that have led companies to trim their programming and film slates.
UNI NST RN