President Donald Trump has just announced a sweeping new policy to impose a 100% tariff on all films produced outside the United States that are imported into the country. The aggressive move is designed to combat what Trump describes as the decline of the American film industry, which he attributes to foreign governments offering generous incentives to lure U.S. filmmakers and studios abroad.
In a statement posted on his social media platform Truth Social, Trump characterised the situation as a coordinated international effort posing a national security threat.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!” he stated. “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Trump has authorised the Department of Commerce and the U.S. Trade Representative to take immediate steps to enforce the tariff. However, details about how this tariff will be applied remain unclear, particularly given the complexity of modern film production, which often involves multiple countries for shooting, post-production, and financing. It is also uncertain whether American companies producing films overseas will be subject to the tariff.
The decline in domestic film production has been worthy of attention. Industry data shows that Los Angeles has experienced nearly a 40% drop in film and television production over the past decade. This trend is partly due to international filming locations offering attractive tax credits and cash rebates. Countries such as Canada, the United Kingdom, and New Zealand have successfully drawn major productions by providing financial incentives, diverting business away from Hollywood.
The announcement follows Trump’s trade policy approach, which has included tariffs on a range of goods and services from countries like China. These measures have contributed to global economic uncertainty and fears of recession. Experts warn that retaliatory actions from other nations could severely damage the U.S. film industry, which is deeply interconnected with international markets.
Despite Trump’s assertions about Hollywood’s decline, the industry has shown signs of recovery following setbacks caused by the COVID-19 pandemic and strikes in 2023. In 2024, Hollywood studios generated approximately $30 billion globally, although this remains below pre-pandemic levels. The shift in consumer behaviour towards streaming services has also transformed the market, complicating the potential impact of tariffs on theatrical releases.
Earlier this year, Trump appointed actors Sylvester Stallone, Mel Gibson, and Jon Voight as “special ambassadors” tasked with revitalising Hollywood’s domestic production. However, their efforts have been relatively low-profile, and industry insiders remain sceptical about the effectiveness of such initiatives without substantial policy support, such as federal tax incentives to compete with international offers.