In a bold move to address what he views as the decline of Hollywood, US President Donald Trump has ordered new tariffs on films produced outside the United States.
The move comes as the president is facing mounting scrutiny over his trade policies, which have already seen him impose sweeping tariffs on countries across the globe.
The Push for “Made in America” Movies
In a post on his Truth Social platform, Trump announced that he was authorizing the Department of Commerce and the United States Trade Representative to implement a 100% tariff on all foreign-made movies coming into the US.
His message was clear: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Commerce Secretary Howard Lutnick echoed the sentiment, reposting Trump’s announcement and promising that the government was “on it.”
However, the specifics of how these tariffs would be implemented remain unclear.
Trump’s Claims About the Decline of Hollywood
Trump’s remarks come at a time when the film industry in the United States is struggling.
In his post, the president declared that the “movie industry in America is dying a very fast death,” blaming the shift of filmmakers and studios to other countries due to attractive incentives.
He argued that Hollywood’s decline, along with other industries in the US, was a “National Security threat” and needs to be addressed immediately.
However, Trump did not clarify whether television shows, which have become a major part of the entertainment industry, would also be affected by the new tariffs.
The Global Shift in Film Production
While Hollywood remains a major player in the global film industry, the United States is no longer the top filming destination.
A report from production tracking service ProdPro noted that US production spending dropped by 26% in just two years, while other locations like Toronto, Britain, and Vancouver have become increasingly popular for film production due to their competitive tax incentives.
The Economic Impact of Hollywood
Hollywood is a major contributor to the US economy, providing millions of jobs and generating billions of dollars in revenue.
In 2022, the industry created over 2.3 million jobs and earned $279 billion, according to the Motion Picture Association.
However, factors such as the Hollywood strikes and the pandemic have shifted the way Americans consume films, with many opting for at-home streaming rather than traditional theater-going.
What’s Next for Trump’s Tariff Plan?
Despite the economic challenges, Trump’s focus on bringing more production back to the US highlights his ongoing efforts to revive American industries.
As the White House moves forward with this new tariff plan, questions remain about its broader impact on the film industry and the economy as a whole.
Will this measure help Hollywood regain its former glory, or will it drive more filmmakers abroad in search of better incentives?
Only time will tell.