President Donald Trump on Monday said he would impose a 100 per cent tariff on all films produced overseas and imported into the United States, a move that could upend Hollywood’s global business model, according to Reuters.
The policy marks an extension of Trump’s protectionist trade stance into cultural industries, raising uncertainty for U.S. studios that rely on cross-border productions and international box office revenue.
“Our movie-making business has been stolen from the United States of America by other countries, just like stealing candy from a baby,” Trump wrote on his Truth Social account.
It was not immediately clear what legal authority Trump would invoke to enforce the 100 per cent tariff. The White House did not respond to Reuters’ request for clarification, while major U.S. studios Warner Bros Discovery, Paramount, Skydance, and Netflix also declined immediate comment. Comcast refused to comment.
Analysts warned that the proposal could raise production costs and ultimately be passed on to consumers. “There is too much uncertainty, and this latest move raises more questions than answers,” Paolo Pescatore of PP Foresight said.
Trump had first floated the idea in May without providing details, leaving industry executives unsure whether it would target specific countries or all imports. Following that announcement, a coalition of U.S. film unions and guilds urged Trump to instead support domestic tax incentives to boost local production.
The U.S. film industry recorded a $15.3bn trade surplus in 2023, supported by $22.6bn in exports to foreign markets, figures from the Motion Picture Association show. But industry stakeholders warned that the tariff could disrupt this balance.
Hollywood has long depended on overseas hubs such as Canada, the UK, and Australia, where tax breaks attract high-budget productions. Co-productions with Asian and European partners also provide financing and market access.
Reuters added that industry executives are concerned a broad tariff might also affect thousands of U.S. workers engaged in overseas shoots, from visual effects artists to production crews, whose work is typically spread across several countries.
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