In a dramatic move aimed at reviving America’s entertainment industry, President Donald Trump announced a 100% tariff on foreign films, stating that “Hollywood is dying a very fast death” due to global competition.
The announcement was made on Sunday on Truth Social and described the decision as economic protectionism and a matter of national security. According to Trump, other countries have been “luring” productions away from the U.S. with aggressive tax incentives and subsidies, turning it into “messaging and propaganda.“
“We want movies made in America again!” Trump declared in all caps.
“This is a concerted effort by other Nations and, therefore, a National Security threat,” he added.
Policy Details Still Unclear
Trump has directed the Department of Commerce to begin implementing the tariffs immediately, but neither Trump nor Commerce Secretary Howard Lutnick provided specifics on how the tariffs will be calculated or enforced.
Lutnick responded briefly on X (formerly Twitter): “We’re on it.”
It remains unknown whether the tariff would affect streaming content, theatrical releases, or both, and whether it would be based on production cost, distribution value, or box office earnings.
Industry insiders say Hollywood studios were left scrambling to interpret the announcement, with The Motion Picture Association (MPA) declining immediate comment.
Global Reactions and Industry Backlash
The reaction from international film hubs was swift. Australia and New Zealand, which have benefited heavily from U.S. film shoots in recent years, vowed to defend their industries.
The British entertainment union Bectu called on the U.K. government to act fast, warning the tariff could deliver a “knock-out blow” to British film production, especially as the industry continues to recover from the pandemic and recent economic slowdowns.
“These tariffs, coming after COVID and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering,” said Bectu head Philippa Childs.
Major Hollywood studios like Disney, Warner Bros Discovery, Paramount Global, and Amazon saw their stocks slip Monday morning, reflecting uncertainty over how the policy could impact operations. All four studios regularly produce content abroad, from Marvel films in Australia to epics like Lord of the Rings in New Zealand.
“Hollywood First”: Trump’s Celebrity Appointments
The tariff announcement follows Trump’s January appointments of Hollywood veterans Jon Voight, Sylvester Stallone, and Mel Gibson to advise on revitalizing the U.S. movie industry. The move was seen at the time as symbolic — now, it appears to be part of a larger campaign to re-shore the entertainment economy.
“We’re going to bring Hollywood back — bigger, better, and stronger than ever before,” Trump had said at the time.
The Bigger Picture
Globally, governments have ramped up tax credits and rebates in an effort to capture a share of the $248 billion that Ampere Analysis estimates will be spent on content production in 2025. Many experts see this as part of a healthy global creative economy — but Trump sees it differently.
Whether or not this new tariff will reshape where movies are made, it’s already rocking an industry still recovering from strikes, streaming upheaval, and shifting consumer habits.
