U.S. President Donald Trump has announced a sweeping 100% tariff on all films produced outside the United States, claiming that foreign production incentives are undermining the American movie industry and threatening national security.
“The American film industry is dying a very fast death,” Trump said Sunday on his Truth Social platform. “This is a concerted effort by other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda.”
Trump said he has directed federal agencies, including the Department of Commerce, to begin immediate enforcement of the tariff, adding in capital letters: “We want movies made in America, again!”
Commerce Secretary Howard Lutnick confirmed the order on X (formerly Twitter), stating, “We’re on it,” though neither Trump nor Lutnick provided specifics on how the tariff would be implemented or measured.
The announcement sent shockwaves through the entertainment industry. Hollywood executives said they were urgently seeking clarity on whether the tariff would apply to streaming content in addition to theatrical releases, and whether it would be calculated based on production budgets, revenues, or other criteria.
The Motion Picture Association, which represents major U.S. film studios, declined to comment on the policy.
The tariff marks Trump’s latest effort to revive domestic film production. In January, he appointed actors Jon Voight, Sylvester Stallone, and Mel Gibson to spearhead a campaign to revitalize Hollywood under the slogan: “bigger, better and stronger than ever before.”
For years, Hollywood has seen an increasing number of productions shift overseas due to lucrative tax incentives and cash rebates offered by other countries. According to Ampere Analysis, global spending on film and television content is expected to hit $248 billion in 2025, with countries such as Canada, the United Kingdom, and Australia aggressively competing for a share.
In 2023, nearly half of all U.S. spending on big-budget film and TV productions—those costing over $40 million—occurred outside the United States, according to data from research firm ProdPro.
In Los Angeles, production activity has declined nearly 40% over the past decade, according to FilmLA. The downturn has raised concerns about job losses and the long-term viability of the region’s film economy, particularly after January wildfires disrupted local shoots.
A recent survey by ProdPro ranked California sixth among global filming destinations, behind Toronto, the UK, Vancouver, Central Europe, and Australia.
Trump’s announcement also prompted concern abroad. Officials in Australia and New Zealand said they would work to protect their local film industries, which have hosted major productions such as Marvel blockbusters and The Lord of the Rings.
However, trade experts cautioned that the policy could provoke retaliatory tariffs from key U.S. partners. William Reinsch, a former Commerce Department official and senior fellow at the Center for Strategic and International Studies, warned that the decision may do more harm than good.
“The retaliation will kill our industry. We have a lot more to lose than to gain,” Reinsch said. “It’s hard to make a national security or emergency case for movies.”
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