WASHINGTON — Former President Donald Trump announced plans to impose a 100% tariff on imported films produced outside the United States, citing concerns over national security and the declining state of the American film industry. In a post on Truth Social, Trump described what he views as a coordinated effort by foreign nations to lure filmmakers away from Hollywood through financial incentives.
Calling the exodus of filmmaking an urgent threat, Trump stated, “The Movie Industry in America is DYING a very fast death.” He added that the U.S. entertainment sector faces challenges from international competitors that provide substantial funding and support for domestic productions. This strategy, according to Trump, undermines U.S. cinema and represents a form of “messaging and propaganda.”
In his remarks to reporters, Trump emphasized that foreign countries are capitalizing on American filmmaking talent. “Other nations have been stealing the movie-making capability of the United States,” he said, reflecting a growing concern among industry stakeholders. He also mentioned that substantial tax incentives in locations like Canada and Australia have adversely affected U.S. production levels.
Jon Voight, appointed as a special ambassador to the Hollywood industry, has been actively meeting with various industry leaders to discuss potential changes, including the possibility of federal tax incentives. Many in the industry have long advocated for a stronger federal approach to tax breaks to keep film projects stateside, as local productions have been increasingly overshadowed by opportunities abroad.
However, some studio executives expressed apprehension that Trump’s proposed tariffs might also lead to restrictions on filming abroad, which Hollywood studios rely on to manage production costs effectively. While the announcement focuses on films, it does not address the significant volume of television series produced in countries like Canada, nor does it consider the growing trend of streaming services creating content overseas.
Uncertainties surround the feasibility of implementing a 100% tariff, particularly concerning productions that split filming between local and international locations or conduct post-production in the U.S. Current U.S. tariffs do not generally cover services, and there remains a World Trade Organization moratorium on digital goods extending to 2026, complicating the application of such tariffs.
Industry leaders have started to voice their concerns about potential retaliatory measures from other countries, which could impact U.S. films in international markets. As evidenced by recent developments, when China responded to Trump’s tariffs on its goods by planning to limit U.S. film imports, the implications of these tariffs could resonate well beyond American borders.
Despite Trump’s focus on bringing more productions back to the States, recent statistics from the Motion Picture Association highlight that the U.S. film industry has maintained a favorable trade balance, with exports far exceeding imports. In 2022, the industry generated approximately $22.6 billion in exports and a trade surplus of around $15.3 billion. Even so, the former President’s objective appears to be reinforcing the cultural and economic importance of keeping filmmaking grounded in America.
Leaders in the film industry await further clarity on how Trump’s trade strategies will develop and what they might mean for the future of American cinema.