Washington, May 5 – U.S. President Donald Trump on Sunday announced a 100% tariff on all movies produced outside the United States, citing national security concerns and the decline of Hollywood due to foreign production incentives.
Calling the American movie industry “a dying one,” Trump said in a post on Truth Social that the move was necessary to counter what he described as a coordinated effort by other nations to lure film production away from the U.S. “This is a concerted effort by other Nations and, therefore, a National Security threat,” Trump wrote. “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Trump directed the Department of Commerce and other agencies to begin implementing the tariff immediately. Commerce Secretary Howard Lutnick responded on social media, saying, “We’re on it,” but no details were provided on how the tariffs would be enforced. It remains unclear whether the new tariffs would apply to films distributed via streaming services, or how the charges would be calculated — whether based on production costs, revenue, or other criteria.
Major studios and Hollywood executives were scrambling for clarity on Sunday night. The Motion Picture Association, which represents leading studios including Disney (DIS.N), Netflix (NFLX.O), and Universal Pictures (CMCSA.O), did not issue a comment.
In response, government officials and industry leaders from Australia, New Zealand, and the United Kingdom criticized the decision and pledged to support their local film sectors. British entertainment union Bectu warned the move could significantly impact the UK’s £5.6 billion film and high-end TV production industry, already recovering from the COVID-19 pandemic.
“These tariffs, coming after COVID and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering,” Bectu head Philippa Childs said, adding that tens of thousands of freelance jobs were at risk.
According to data from research firm ProdPro, over 50% of U.S. spending on high-budget film and television productions occurred outside the country in 2023. California ranked just sixth among preferred filming locations, behind Toronto, the UK, Vancouver, Central Europe, and Australia.
Trump’s announcement follows earlier efforts to revive domestic production, including the January appointment of actors Jon Voight, Sylvester Stallone, and Mel Gibson to a task force aimed at restoring Hollywood’s former dominance.
Former senior Commerce official William Reinsch warned that retaliatory measures from U.S. trade partners could be devastating. “The retaliation will kill our industry. We have a lot more to lose than to gain,” he said, adding that the national security justification may not hold up under scrutiny.
