U.S. President Donald Trump on Sunday announced that he has ordered a 100% tariff on all foreign-made films entering the United States, calling it an urgent step to save the American movie industry. Trump described the current state of Hollywood as "dying a very fast death" and linked the decline to foreign governments offering incentives to lure U.S. film productions abroad.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda,” Trump said in a post on Truth Social. He stated that he has authorized the Department of Commerce and the U.S. Trade Representative to immediately begin the process of instituting the tariff. Commerce Secretary Howard Lutnick confirmed the directive by responding, “We’re on it,” via X.
As of now, there has been no official confirmation on when the tariffs will take effect or how they will be implemented. It also remains unclear whether the tariffs will cover films distributed via streaming platforms or only those released in theaters. Neither Trump nor Lutnick provided additional details on the operational framework of the measure.
Hollywood executives were reportedly reviewing the announcement and assessing its potential impact. The Motion Picture Association, which represents major studios, has not issued a comment. In January, Trump had appointed actors Jon Voight, Sylvester Stallone, and Mel Gibson to help revive domestic film production.
Foreign film incentives have drawn significant production away from the U.S., with over 50% of 2023’s big-budget American film projects shot overseas. Locations such as Toronto, London, and Central Europe offer generous tax rebates, and California has dropped to sixth in producer preference, behind international destinations. U.S. film production in Los Angeles has declined by nearly 40% over the past decade, according to FilmLA.