U.S. President Donald Trump announced Sunday he will impose a 100% tariff on films produced outside the United States, claiming foreign incentives are killing the American film industry and undermining national security.
“The Movie Industry in America is DYING a very fast death,” Trump wrote on his social media platform Truth Social. “Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.”
Calling it a "concerted effort by other nations," Trump said the issue has become one of national security, adding that such productions amount to “messaging and propaganda.” He instructed the U.S. Commerce Department and the U.S. Trade Representative to immediately begin imposing 100% tariffs on films made abroad and imported into the country. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” he declared.
It remains unclear how the tax will be applied—whether U.S. studios filming overseas will be affected, or only foreign companies.
According to a Los Angeles research institute, the city’s film and television industry has shrunk by nearly 40% over the past decade, as more American productions move to countries offering tax breaks — including Hungary, the Czech Republic, Australia, Canada, the UK and New Zealand.
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In response to Trump’s announcement, Hollywood studio executives have scheduled emergency meetings to assess the potential impact. Among the questions is whether the tax would apply to in-progress productions, such as the third installment of "Avatar", which is currently being filmed in New Zealand. Trump did not mention whether the measure would include television productions, many of which are also shot abroad.
The announcement follows escalating trade tensions between the U.S. and China. In April, China announced it would cut the number of American films allowed to screen in its theaters — a move expected to significantly hurt U.S. box office revenues.
William Reinsch, a former senior official at the U.S. Department of Commerce, told The Guardian the proposed tariffs could backfire. “The retaliation will kill our industry. We have a lot more to lose than to gain,” Reinsch said.