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Trump’s 100% Tariff on Foreign Films Sparks Global Trade Tensions and Hollywood Debate

Donald Trump says he will hit films made in foreign countries with 100% tariffs, as he ramps up trade disputes with nations around the world.

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By MoneyOval Bureau

May 08, 20255 min read

Trump on non-US movie tariffs: 'Hollywood is being destroyed

President Donald Trump has ignited a firestorm in the global film industry by announcing a 100% tariff on movies produced outside the United States, claiming the measure is necessary to save Hollywood from a “very fast death.”

In a post on his Truth Social platform, Trump accused foreign nations of orchestrating a “concerted effort” to lure American filmmakers with lucrative incentives, labeling the trend a “national security threat” and a vehicle for “messaging and propaganda.”

The announcement, which escalates Trump’s ongoing trade disputes with countries worldwide, has raised alarm among filmmakers, industry leaders, and international allies.

Trump declared that he has directed the Department of Commerce and the U.S. Trade Representative to initiate the tariff process immediately, emphasizing his goal to “make movies in America again.” U.S. Commerce Secretary Howard Lutnick confirmed the administration’s commitment, stating, “We’re on it.”

However, key details remain unclear, including whether the tariffs will apply to American studios filming abroad, how they will be calculated, and whether they will extend to films on streaming platforms like Netflix or be limited to theatrical releases.

Uncertain Impacts on a Global Industry

The film industry, particularly in countries like the UK, Canada, Australia, and New Zealand, which have attracted significant Hollywood productions with generous tax credits and skilled crews, has been shaken by the proposed tariffs.

Major U.S. studio films such as Deadpool & WolverineWicked, and Gladiator II were shot abroad, highlighting the globalized nature of modern filmmaking. Industry experts warn that the tariffs could disrupt this interconnected system, potentially driving up costs and stifling mid-budget and independent films.

Timothy Richards, founder of European cinema chain Vue, questioned the feasibility of defining a “foreign film” for tariff purposes. “Is it where the money comes from? The script, the director, the talent, where it was shot?” he asked on BBC Radio 4’s Today program.

Richards noted that the UK’s success in attracting productions stems not only from financial incentives but also from its world-class crews, a factor that tariffs may not address.

The media union Bectu in the UK expressed concern that the tariffs could significantly impact an industry that is still recuperating from the pandemic and recent slowdowns. Union chief Philippa Childs urged the UK government to act swiftly to protect the sector’s freelancers, who number in the tens of thousands.

The UK government responded by reaffirming its commitment to the creative industries and announced plans to outline support in an upcoming Creative Industries Sector Plan; however, it declined to comment on the ongoing U.S. trade talks.

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International Pushback and Economic Concerns

Australia and New Zealand, both major hubs for Hollywood productions, also voiced concerns. Australian Home Affairs Minister Tony Burke pledged to “stand up unequivocally” for the country’s screen industry, while Screen Producers Australia predicted “shock waves worldwide.” New Zealand Prime Minister Christopher Luxon promised to champion the local industry but noted that further details on the tariffs were needed.

According to ProdPro’s 2024 annual report, global film production spending reached $248 billion, with the U.S. accounting for $14.54 billion, a 26% drop from 2022. Countries like Australia, Canada, and the UK have seen increased spending, driven by incentives and lower costs.

Trump’s tariffs could exacerbate tensions with these allies, especially as his broader trade policies, including a 145% tariff on Chinese goods, have already disrupted global markets.

NPR film critic Eric Deggans cautioned that retaliatory tariffs from other countries could harm Hollywood’s exports, which generated $22.6 billion and a $15.3 billion trade surplus in 2023, per the Motion Picture Association.

“It may create a situation where the tariffs in America are causing more harm than good,” Deggans told the BBC. China, the world’s second-largest film market, has already reduced its quota for American films in response to U.S. tariffs, citing a decline in audience favorability.

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Hollywood’s Challenges and Trump’s Vision

Trump’s announcement follows his appointment of actors Jon Voight, Mel Gibson, and Sylvester Stallone as “special ambassadors” to revitalize Hollywood, which he called a “great but very troubled place.” Some criticize the move ahead of his January 2025 inauguration as symbolic, while industry insiders await concrete plans.

Hollywood has faced declining production in Los Angeles, down nearly 40% over the past decade, according to FilmLA, due to high costs and competition from other U.S. states like Georgia and New York, as well as foreign incentives.

Did You Know?
The U.S. film and television industry supports over 2.7 million jobs and contributes $242 billion annually to the economy, according to the Motion Picture Association’s 2023 economic impact report.

White House spokesman Kush Desai clarified that “no final decisions” have been made, and the administration is exploring options to balance national security with economic goals.

However, veteran producer Kathryn Arnold called the tariffs “insane and devastating,” warning that higher U.S. production costs could render many projects unviable.

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