In a move that could dramatically reshape the global movie industry, former President Donald Trump is threatening to impose a 100% tariff on all films made outside the United States. The announcement has sparked confusion, criticism, and a whole lot of head-scratching in both Hollywood and the international film community.
Trump made the bold declaration on his Truth Social platform, claiming that overseas film production poses a threat not just to the American economy—but to national security.
Trump Says Foreign Movie Incentives Are Killing American Cinema
According to Trump, the U.S. movie industry is on life support, losing ground fast because other countries are rolling out tempting financial perks to lure filmmakers abroad. From the UK to Canada, and even Australia, foreign governments offer significant tax incentives that attract big-budget productions—leaving Hollywood in the dust.
“This is a concerted effort by other nations,” Trump wrote, calling it both an economic and security issue. “It’s propaganda,” he added, without explaining how international filming connects to national messaging or threats.
The Problem with Policing Global Movie-Making
While Trump’s rhetoric is fiery, it’s unclear how this plan would actually be carried out. Many major films these days are international efforts—shot across multiple countries and involving production teams from all over the world.
Take Mission: Impossible – The Final Reckoning, for example. The latest installment in the Tom Cruise franchise was filmed in the UK, South Africa, Malta, and Norway. Where exactly would that tariff apply?
Adding to the confusion is the fact that American films still dominate U.S. box offices, making the argument for tariffs a bit shaky from a business perspective. The goal of tariffs is typically to protect domestic markets—but U.S. films already have a stronghold at home.
Tariffs and Tensions Keep Rising in Trump’s Economic Playbook
This movie tariff idea isn’t Trump’s first foray into aggressive trade tactics. He’s been embracing the “Tariff Man” persona for years—targeting everything from Chinese electronics to European steel. Just recently, he called for a whopping 145% tariff on certain Chinese imports, with a baseline 10% on goods from nearly every other country.
His go-it-alone approach to trade has stirred up markets and made international relations tense. Now, with movies on the hit list, the cultural sector is the latest to feel the heat.
Hollywood’s Struggles Didn’t Start with Tariffs
It’s true that American film production has hit a rough patch lately. Between pandemic disruptions, industry strikes in 2023, and devastating wildfires around Los Angeles, the U.S. has lost some of its appeal for major shoots.
Production in California dropped 5.6% last year, according to FilmLA—one of the worst years since the peak of the COVID crisis in 2020. Nationally, output was down 26% from just two years ago. Meanwhile, cities like Toronto, London, and Sydney are topping studio wish lists.
U.S. States Are Trying to Compete—But It’s a Tough Fight
In response to the production slump, states like California, Georgia, and New Jersey are sweetening their tax credit programs. California Governor Gavin Newsom even proposed nearly doubling the state’s film and television tax credit to $750 million.
Still, the U.S. struggled to break into the top five preferred filming locations in 2023. According to the Hollywood Reporter, even traditionally strong contenders like New York and Georgia are falling behind their international rivals.
Trump’s Celebrity Allies and the “Hollywood Comeback” Plan
Trump has long viewed Hollywood as a battlefield. Back in 2016, just before taking office, he named actors Mel Gibson, Jon Voight, and Sylvester Stallone as “special ambassadors” for his mission to bring movie-making back to American soil.
His latest move—though vague and controversial—is a continuation of that idea: to keep jobs, production, and dollars inside the U.S., even if it means strong-arming the industry with tariffs.
Critics Say Tariffs Could Backfire on U.S. Studios
While Trump’s plan might sound patriotic on the surface, many insiders fear it could backfire. Tariffs could hurt American distributors and streaming platforms who depend on international content, complicate co-productions, and raise costs for everyone—from indie filmmakers to the big studios.
Plus, there’s a legal and logistical quagmire: How do you fairly tax a movie filmed in five countries, starring American actors, but funded by European investors?
The Motion Picture Association Stays Quiet—for Now
So far, the Motion Picture Association (MPA) hasn’t weighed in publicly on Trump’s proposal. But given that U.S. movies brought in over $22 billion in global exports and generated a $15 billion trade surplus in 2023, they’re probably not thrilled about risking international relationships.
At a time when Hollywood is already trying to rebound from multiple setbacks, an international film war may not be what the industry needs.
What’s Next for Filmmakers—and for Trump?
As with many Trump declarations, it’s unclear whether this plan will gain traction—or quietly fade away. But the conversation is heating up, and with the 2024 election season looming, it’s likely this won’t be the last time movies become political.
Whether this tariff proposal is a serious policy move or just more posturing remains to be seen. Either way, filmmakers around the world—and in the U.S.—will be watching closely.