U.S. President Donald Trump has declared a sweeping 100% tariff on all films produced outside the United States, arguing that the American movie industry is in rapid decline due to competitive incentives offered by foreign governments. Announcing the measure on Truth Social, Trump described the exodus of film production as a coordinated international effort to undermine U.S. cultural influence and called it a matter of national security and propaganda. He directed government agencies, including the Department of Commerce, to immediately begin implementing the tariffs. Commerce Secretary Howard Lutnick confirmed the order by stating the department was already acting on it. However, neither Trump nor Lutnick provided specific guidance on how these tariffs would be calculated or enforced, leaving questions unanswered about whether they apply to streaming platforms or just theatrical releases, and whether the fees would be based on production budgets or revenue figures.
Hollywood executives were caught off guard, with many scrambling to understand the implications. The Motion Picture Association, representing major studios, declined to comment. Trump’s announcement follows his earlier move in January, when he appointed actors Jon Voight, Sylvester Stallone, and Mel Gibson to revive the U.S. film industry. The decision arrives at a time when global governments have been aggressively competing for production spending, with generous tax credits and rebates helping them attract a growing portion of the $248 billion in global content investment projected for 2025.
Major U.S. studios including Disney, Netflix, Universal, and Paramount frequently film outside the country in locations like Canada and the United Kingdom to take advantage of these savings. As the news broke, stock prices for major entertainment firms dipped. Governments in Australia and New Zealand expressed support for their local industries, noting the potential economic hit if U.S. companies reduce filming abroad. In the UK, media union Bectu warned that the tariff could be catastrophic for a sector still recovering from COVID-19 disruptions and a recent industry slowdown. Production spending in the UK reached £5.6 billion in 2024, a significant increase from the previous year. Experts have raised concerns that rather than triggering a resurgence of American-based production, the tariff could lead to fewer films being made overall, further straining an industry already grappling with declining production levels and job losses in traditional hubs like Los Angeles.
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