In a post published on his social media platform Sunday evening, President Donald Trump announced that he plans to impose a 100% tariff on movies that are produced overseas.
The president said the U.S. film industry is “DYING a very fast death” due to competition from foreign nations, which are purportedly drawing American filmmakers and studios to their shores, creating a “National Security threat” due to “messaging and propaganda.” Accordingly, the president authorized the Department of Commerce and the U.S. Trade Representative to institute a 100% tariff on movies “produced in Foreign Lands.”
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump added.
Commerce Secretary Howard Lutnick acknowledged Trump’s decree, saying on social media, “We’re on it.”
How will it work? The White House provided no details on how the U.S. could impose a new tariff on foreign films, so it’s unclear whether the new tax would apply to all imported media or just major films shown in theaters, or something else entirely. The status of films that are handled by U.S producers but shot in other countries is also unknown.
Films are typically seen as intellectual property, which is classified as a service, and the new tariff could signal a new level of conflict in Trump’s burgeoning trade war.
“If Trump is serious about tariffs on movies, it's a very dangerous escalation,” said University of Michigan economist Justin Wolfers. “Tariffs have not traditionally been applied to services, and the United States is a massive net exporter of services. We would be extremely vulnerable to any service-based retaliation.”
In the film business, the U.S. runs a significant surplus, Wolfers noted, with the surplus topping $15 billion in 2023.
Hollywood concerned: Over the weekend, the president reportedly met with actor John Voight, one of his three “special ambassadors” to Hollywood, and their conversation may have played a role in Trump’s tariff announcement on Sunday. CNN reports that Voight pitched Trump on new tax incentives for the industry, but not tariffs.
The U.S. film industry has seen a significant decline in domestic production, driven in part by studios pursuing cheaper labor in places like Canada and Ireland, and some in the industry are concerned about the decline of productive capacity.
Even so, Trump’s tariff idea was not immediately embraced in Hollywood. An industry insider told CNN that it could be disastrous and may not even be legal. “On first blush, it’s shocking and would represent a virtually complete halt of production,” the insider said. “But in reality, he has no jurisdiction to do this and it’s too complex to enforce.”
White House wavering? A White House spokesperson said that the administration is still reviewing the situation. “Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again,” spokesperson Kush Desai said.
Speaking to reporters in the Oval Office Monday afternoon, Trump said he would consult with U.S. film executives before reaching any final decisions.