Trump Proposes 100% Tariff on Foreign Films, Intensifying Trade Dispute

President Donald Trump announced on Sunday that he intends to impose a 100% tariff on films produced overseas, extending his restrictive trade policies on US imports to the entertainment industry for the first time.

In a Truth Social post, the American leader stated that he was directing the Commerce Department and his trade representative to "immediately begin the process of instituting" the foreign movie levy. "WE WANT MOVIES MADE IN AMERICA, AGAIN!" Trump continued.

The president also cited foreign productions as a national security threat, claiming that other countries were using films for messaging and propaganda.

It is unclear how such a tariff would operate, or how such films would be valued for tariff collection purposes. Many Hollywood studio films involve global production, which includes shooting locations in foreign countries as well as post-production work that can be done anywhere. Other unanswered questions include whether the fee applies to films that have already been shot but have yet to be released, or only to new productions.

Upcoming releases with extensive foreign locations include Walt Disney Co.'s The Fantastic Four: First Steps, which was shot in the UK and Spain, and Universal Pictures' Jurassic World Rebirth, which was shot in Thailand, the UK, Malta, and the United States.

Film and television work in the United States has declined in recent years for a variety of reasons. As they transitioned from traditional TV to streaming services, media companies reduced spending in an effort to increase profits. These streaming services are expanding globally and aiming to produce more films for international markets.

Spending on film and television production in the United States fell 28% between 2021 and 2024, according to ProdPro research. Other countries, such as Canada, Australia, and the United Kingdom, are experiencing an increase in film and television production, thanks in part to attractive tax breaks and lower production costs.

Film and television production in the greater Los Angeles area fell 22% in the first quarter, reflecting California's ongoing loss of business to other areas.

In January, Trump appointed actors Mel Gibson, Jon Voight, and Sylvester Stallone as special ambassadors to Hollywood, with the goal of increasing US employment. Voight is expected to introduce some ideas soon, including business incentives.