Trump Threatens 100% Tariff on Foreign-Made Films/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump announced plans to impose a 100% tariff on all films made outside the U.S., calling foreign movie incentives a national security threat. He claims the American film industry is in steep decline due to international subsidies and outsourcing. Industry experts and foreign leaders responded cautiously, highlighting Hollywood’s global dominance and the complexity of film production.
Trump’s Foreign Film Tariff Threat: Quick Looks
- New 100% Tariff Proposal: Trump aims to tax all foreign-made films to revive U.S. movie production.
- National Security Angle: Trump calls overseas film incentives a propaganda tool and national threat.
- Industry Shift Abroad: Countries like New Zealand, the U.K., and Canada lure productions with tax breaks.
- U.S. Industry Struggles: COVID-19, labor strikes, and wildfires have reduced domestic film production by 26%.
- Hollywood’s Global Success: American films still dominate global exports, earning $22.6B in 2023.
- California’s Decline: California ranks sixth globally as a preferred filming location despite incentive expansions.
- Trump’s Film Agenda: Trump pushes to bring Hollywood “back” with loyal celebrities and aggressive policies.
Trump Threatens 100% Tariff on Foreign-Made Films
Deep Look
In a bold new move, President Donald Trump has proposed a sweeping 100% tariff on all movies produced outside the United States, framing the issue as both economic warfare and a matter of national security. Announced Sunday night on Truth Social, Trump’s statement sharply criticized countries offering generous film production incentives, which he claims are luring U.S. studios away and killing the domestic movie industry.
“The Movie Industry in America is DYING a very fast death,” Trump wrote, accusing other nations of orchestrating a “concerted effort” to undercut U.S. film production and spread foreign “messaging and propaganda.” He authorized the U.S. Department of Commerce and the Office of the Trade Representative to enact the tariff, though the legality and feasibility of the policy remain unclear.
Global film production has become increasingly multinational, with many big-budget U.S. films shot partially or entirely abroad. The latest “Mission: Impossible” installment, for example, includes locations across multiple continents. Such international shoots are largely driven by tax incentives and grants offered by countries hoping to attract Hollywood productions.
New Zealand, a standout in this strategy, has reaped billions in revenue from hosting large-scale productions such as “The Lord of the Rings,” “The Hobbit,” and most recently, the upcoming “Minecraft” movie. According to government data, U.S. film projects injected $777 million into New Zealand’s economy in 2023 alone, in exchange for around $200 million in rebates.
Prime Minister Christopher Luxon responded cautiously to Trump’s remarks, emphasizing New Zealand’s continued appeal to filmmakers. “We’ve got an absolutely world-class industry. This is the best place to make movies, period, in the world,” Luxon stated, reaffirming the country’s commitment to remain a top global destination for film production.
Trump’s proposed policy could significantly alter international filmmaking dynamics, but its execution would be complicated. Many films involve collaborative financing, production, or filming across borders, making it difficult to define what qualifies as a “foreign-made” film for tariff purposes. Moreover, foreign-made movies constitute a relatively small portion of box office receipts in the U.S., where Hollywood productions dominate.
According to the Motion Picture Association (MPA), American films generated $22.6 billion in exports and a $15.3 billion trade surplus in 2023. These figures illustrate Hollywood’s enduring global influence, even as production shifts occur.
Trump’s call for tariffs aligns with his broader protectionist stance. He has already imposed a 145% tariff on certain Chinese imports and applied a 10% baseline tariff on other global goods. Tariffs have also been expanded to cover sectors like steel, automobiles, and pharmaceuticals.
Domestically, the U.S. film industry faces its own hurdles. The COVID-19 pandemic, the 2023 guild strikes, and natural disasters such as wildfires in California have disrupted production pipelines. In 2024, U.S. film production dropped 26% compared to 2021, according to industry tracking firm ProdPro.
FilmLA, which monitors production activity in the Los Angeles region, reported that production levels in 2024 were the second-lowest since the height of the pandemic in 2020. California Governor Gavin Newsom, a Democrat, has tried to reverse this trend, proposing an expansion of the state’s Film & Television Tax Credit from $330 million to $750 million annually.
Despite these efforts, a recent survey by the Hollywood Reporter found that no U.S. city ranked in the top five preferred global filming destinations. Locations like Toronto, Vancouver, Central Europe, and the U.K. have surged ahead, offering compelling financial and logistical benefits.
Trump, a long-time critic of Hollywood’s migration overseas, once pledged to restore the industry to American soil by appointing actors Mel Gibson, Jon Voight, and Sylvester Stallone as unofficial cultural ambassadors. The move, announced in the lead-up to his presidency, was framed as a symbolic effort to rejuvenate American filmmaking.
“Other nations have been stealing the movie-making capabilities from the United States,” Trump reiterated Sunday. “If they’re not willing to make a movie inside the United States, we should have a tariff on movies that come in.”
While Trump’s statement may energize his base and appeal to America-first rhetoric, trade experts and industry insiders warn that such a policy could backfire. Tariffs may invite retaliatory measures, complicate existing distribution deals, and raise legal challenges in international trade courts.
The Motion Picture Association, which represents major film studios and streaming platforms, has yet to officially comment. However, the proposal places them in a challenging position—balancing the advantages of global production with the risk of punitive domestic regulation.
With election season heating up, Trump’s renewed focus on Hollywood could become a symbolic flashpoint in his campaign—a clash of culture, commerce, and nationalism on the big screen.
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