US President Donald Trump speaks with the media aboard Air Force One (Credit: AFP)
Trump orders 100% tariff on all foreign-made films
US President Donald Trump announced Sunday that he intends to slap a 100 percent tariff on films produced outside the US, claiming such productions represent a threat to national security.
In a post on social media, Trump said he had authorized Jamieson Greer, the US Trade Representative, to begin implementing tariffs on “any and all Movies coming into our Country that are produced in Foreign Lands.” He added, “This is a concerted effort by other Nations and, therefore, a National Security threat.”
Trump did not clarify whether the proposed tax would apply to all foreign films — including low-budget international titles, streaming-exclusive releases, or co-productions with US studios — leaving the scope of the plan ambiguous.
According to the Motion Picture Association's 2023 economic impact report, the film industry still maintains a trade surplus with every major market, reflecting Hollywood’s global economic strength.
While most movies released in American theaters are primarily developed in the US, major studios have increasingly relied on international filming locations to reduce costs. Countries such as Canada, Australia, Hungary, and New Zealand offer generous tax incentives and cheaper labor — factors that have drawn major productions away from Hollywood.
This shift has had a visible impact on local employment. The International Alliance of Theatrical Stage Employees estimates that around 18,000 full-time film industry jobs, mostly in California, have disappeared in the past three years.
“We’re allowing California to become to the entertainment industry what Detroit has become to the auto industry,” Michael F. Miller Jr., a union vice president, warned in a recent interview.
Studios have also faced a post-pandemic industry squeeze, with tighter budgets, declining box office revenue, and the collapse of DVD sales. Though California Governor Gavin Newsom has advocated for a major expansion of the state’s film tax credit program, competition from abroad remains fierce.
Earlier this year, Trump named actors Mel Gibson, Sylvester Stallone, and Jon Voight as “special ambassadors” tasked with revitalizing Hollywood and bringing production back to American soil.