In a bold and controversial move, former US President Donald Trump announced on Sunday that he will impose a 100% tariff on all movies produced outside the United States, citing the decline of domestic film production as a national security concern.
The announcement, made via Trump’s Truth Social platform, marks a significant escalation in his administration’s ongoing trade policy battles and could have wide-ranging consequences for the global film industry.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump wrote in all caps, authorizing the Department of Commerce and the US Trade Representative to begin the process immediately. Commerce Secretary Howard Lutnick confirmed the directive, replying, “We’re on it.”
While details on how the foreign film tariff would be implemented remain unclear, the move has already sparked reactions within the entertainment sector and trade policy circles.
Hollywood Facing Industry Challenges
The announcement comes as Hollywood continues to grapple with the lingering effects of the COVID-19 pandemic, a series of major industry strikes, and a shifting consumer market that increasingly favors home streaming over traditional cinema experiences.
According to the Motion Picture Association, the US film industry generated over 2.3 million jobs and $279 billion in sales in 2022. However, recent reports reveal a sharp drop in domestic production spending, with a 26% decline over the past two years.
A January 2025 survey by production tracking firm ProdPro indicated that US-based studios now favor international locations due to attractive tax incentives. The top five destinations for upcoming film projects are Toronto, Britain, Vancouver, Central Europe, and Australia — leaving California in sixth place.
Trump Cites National Security Concerns
Trump argued that foreign governments offering financial incentives to lure American film studios overseas poses a national security threat. “The Movie Industry in America is DYING a very fast death,” he posted. “Hollywood, and many other areas within the U.S.A., are being devastated.”
While Trump did not clarify whether the proposed tariff would extend to television series — a booming sector in today’s content-driven market — insiders warn that such a policy could destabilize international partnerships and disrupt global distribution channels.
Entertainment Envoys and Partisan Tensions
Trump, known for his contentious relationship with Hollywood’s predominantly liberal elite, previously appointed longtime allies Sylvester Stallone, Mel Gibson, and Jon Voight as special envoys to the entertainment industry. In his latest post, Trump pledged that these figures would help make the sector “STRONGER THAN EVER BEFORE.”
The move underscores ongoing political tensions between Trump and Hollywood, whose major stars — including Taylor Swift and George Clooney — publicly backed Kamala Harris in the 2024 presidential election.
What’s Next for Hollywood and Foreign Film Tariffs?
As the industry awaits further details on the proposed tariffs, film executives, distributors, and trade analysts are closely monitoring potential legal challenges and economic fallout. The Motion Picture Association has yet to issue an official response.
The unprecedented tariff proposal adds another layer of uncertainty to a global film market already navigating post-pandemic recovery and evolving consumer habits.
