In a move that could impact the global film industry, U.S. President Donald Trump has proposed 100% tariffs on movies produced outside the United States. This move aims to bolster the American film industry, which he described as facing a rapid decline due to incentives offered by other countries to attract filmmakers and studios.
In a post on his Truth Social (DJT) platform on Sunday night, he posted, “Hollywood is dying a fast death. Other countries are stealing our filmmakers. We want movies made in America again!”
He disclosed his intention to authorize the Commerce Department and the U.S. Trade Representative to immediately begin the process of instituting a 100% tariff on all foreign-made movies.
He said, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Uncertainty About Proposed Tariffs
It must be noted that several Hollywood films use foreign locations and global post-production work. Overall, it remains unclear whether the tariffs would apply to movies on streaming services as well as theatrical releases, or how the tariff amount would be calculated, i.e., based on production costs or box office revenue.
Also, it is uncertain whether the proposed tariff would apply to finished movies waiting to be released or just new productions.
Critics warn that the tariff could hurt American theaters and streaming platforms, making foreign films too expensive to import. As a result, this could limit consumer choice, particularly for viewers who enjoy international cinema.
Impact on U.S. Entertainment Companies
The proposed tariffs would have a direct impact on U.S. entertainment companies. Studios and streaming services will have to pay double for foreign movies, making them less likely to import films. This could reduce content diversity.
Also, platforms like Netflix (NFLX), Amazon (AMZN) Prime, and Hulu rely on foreign films and shows to attract global audiences. Higher tariffs could force them to invest more in domestic content, impacting their profits.
Moreover, Hollywood studios, such as Disney (DIS), Warner Bros. Discovery (WBD), and Comcast’s (CMCSA) Universal Pictures, might keep more productions in the U.S. to avoid tariffs. This could increase costs for filmmakers used to shooting in cheaper international locations.