Donald Trump has announced that he plans to impose a 100% tariff on all foreign-made movies.
Trump takes a firm stance on non-US movies
In a post on Truth Social on Monday, the US president said the American film industry was being “stolen” by other countries offering cheaper production deals.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby.’ California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States,” he wrote.
A tariff is basically a tax. If applied, it would mean that any film produced outside the US and brought into the American market would cost twice as much.
For example, if a movie was expected to cost $10 million to distribute in the US, a 100% tariff would add another $10 million, making it $20 million.
This is the first time Trump has threatened tariffs on a service industry like film, rather than goods such as steel or cars.
What this means for Hollywood
The reaction from Hollywood has been one of shock and confusion.
Industry insiders told CNN that such a tariff would “represent a virtually complete halt of production” abroad. However, they also pointed out that Trump may not have the legal authority to enforce such a policy.
Studios often choose to film overseas because it is cheaper. Many countries, including Canada and parts of Europe, offer tax incentives and lower labour costs.
This makes it less expensive for studios to fly out actors and crews than to shoot entirely in the United States.
Jay Sures, vice chairman of United Talent Agency, explained:
“The fact is, it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper.”
If the tariffs were somehow implemented, it could mean:
- Fewer foreign films available in the US, since costs would be too high.
- Higher ticket prices for audiences, as studios pass on the extra costs.
- Potential job growth in California and other US states if productions are forced back home — though this may also drive up production costs.
The financial markets also reacted. Shares of Netflix fell by 1% on Monday morning after Trump’s post, while cinema chain AMC and entertainment giant Disney saw small gains.
At this stage, it remains unclear how Trump plans to enforce the measure. Analysts say it may not survive legal or trade challenges.