President Donald Trump recently announced a new plan to implement a tariff on movies made outside of the U.S.
Announced in a Truth Social post, Trump said that the US Department of Commerce and Trade Representative will start the process of levying a 100% tariff on all movies that are not produced in the U.S.
Questions are currently being asked by executives across Hollywood as the post was not clear on how exactly these tariffs would work. While only film was specifically mentioned, Hollywood leaders are awaiting to see if TV will be included and if the tariffs would be based on production costs rather than box office revenue.
The announcement was also unclear about how streaming factors into the tariffs and how foreign films that are being shown in the U.S. would be affected if they were to also be tariffed.
Per CNN, multiple executives have already reached out to Commerce Secretary Howard Lutnick for answers as they are questioning whether Trump has the authority to make such decisions for work considered as services. Tariffs are usually considered for goods and legal opposition is expected to counter his claim that foreign film production is “a national security threat.”
As of now, questions remain open as no plan has been concretely finalized for the new tariff. Per Trump, he will meet with U.S. film reps before doing so. No names on who will be considered a part of this meeting have been released.
A spokesperson for California Gov.Gavin Newsom reacted to the news hours after Trump claimed that the governor was a “grossly incompetent man” who is “allowing [Hollywood] to be taken away.”
“Governor Newsom continues to champion California’s iconic film and television industry — recognizing it as a cornerstone of the state’s economy, one that sustains hundreds of thousands of good-paying jobs across every sector around the state His plan to more than double the state’s film and television tax credit reflects a commitment to keeping production here at home, supporting workers and maintaining California’s global leadership in entertainment,” the spokesperson said per CNBC. “If the President announces a proposal with more details, we will review it.”
The proposed tariff, which was conceived alongside actor Jon Voight, is an attempt to “make Hollywood great again.”
The news comes as domestic revenues are on the rise, marking a 15.8% increase in 2024.
According to CNN, according to the Motion Picture Association of America’s latest 2023 report, Hollywood runs a $15.3 billion trade surplus by selling media to foreign markets, clearing three times the value spent on importing. Production costs, however, were not factored.
A majority of films are currently produced in different countries such as Canada, Australia and the UK as they offer different tax incentives and grants. With disruptions such as the pandemic and the SAG-AFTRA strike, studios are attempting to cut their costs to make up for lasting impacts.
Hollywood is a major source of American soft power; many around the world identify with the “good side” image that Hollywood portrays of the U.S. Trump’s harsh economic moves, 100% tariff on foreign films, could prompt countries to retaliate. This could damage the U.S.’s image. pic.twitter.com/GM6UG4Fn5P
— Ahmet Akalın (@GucYumusak) May 5, 2025
If the new tariff is implemented, it is still unknown exactly how long Hollywood will be forced to deal with the impact. The impact of the tariff on foreign-made films is also currently unknown, but the worst is expected.
“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 per Reuters, adding that tens of thousands of freelancer jobs could be affected.
