President Donald Trump has proposed implementing a 100% tariff on films produced outside the United States, according to The Wall Street Journal. The surprise announcement, made through his Truth Social platform on Sunday, characterized foreign tax incentives drawing Hollywood productions overseas as a threat to national security.
"The Movie Industry in America is DYING a very fast death," Trump wrote on Truth Social. The president described international filmmaking incentives as "a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!"
The practical application of such tariffs remains unclear since movies aren't physical goods that pass through customs like typical tariffed items. Trump's administration would need to establish methods for valuing films and determining what threshold would classify them as imports.
If other nations imposed reciprocal tariffs in response, the impact on Hollywood studios could be devastating since most big-budget films generate the majority of their revenue from international markets, The Wall Street Journal pointed out. The American film industry maintained a $15.3 billion trade surplus in 2023 and generated positive trade balances with every major foreign market, according to a Motion Picture Association report.
Trump directed the Commerce Department and US Trade Representative to "immediately begin the process" of implementing the 100% tariff. US Commerce Secretary Howard Lutnick responded quickly on X, posting: "We're on it."
Several major summer blockbusters, including "Mission: Impossible – The Final Reckoning" and "Jurassic World Rebirth," were produced primarily or entirely outside the US. London has emerged as a particularly attractive production hub due to tax incentives, extensive infrastructure, including large soundstages, and English-speaking crews, with Disney's Marvel Studios currently shooting upcoming Avengers sequels there.
Research firm ProdPro data indicates total spending on US film and television productions with budgets exceeding $40 million fell 26% last year compared to two years earlier. During the same period, production spending increased in both the UK and Canada, though neither market has surpassed US levels.
Earlier this year, Trump appointed actors Jon Voight, Mel Gibson, and Sylvester Stallone as his "special ambassadors" to Hollywood, tasking them with helping reclaim film industry business lost to foreign countries. "These three very talented people will be my eyes and ears, and I will get it done what they suggest," Trump stated.
Questions persist about whether the measures would extend to streaming service content in addition to theatrical releases, and which financial metrics – production expenses or theatrical earnings – would serve as the basis for tariff calculations. The Motion Picture Association, the organization representing major studios, offered no immediate response when contacted, according to Reuters.
