President Donald Trump announced Sunday night his administration's plan to impose a 100% tariff on all films produced outside the United States, a move that has stunned Hollywood and raised alarms across the global film industry.
Trump, in a post on Truth Social on May 4, said the American movie industry is facing a “very fast death” and blamed foreign-made films for undermining the U.S. economy and spreading what he called “foreign propaganda.”
“The movie industry in America is dying a very fast death. It’s a national security issue now,” the president wrote. “Other countries are flooding our market with their garbage, while stealing our jobs and our stories. This ends now.”
Industry Confused, Concerned
The announcement was made without any accompanying policy documentation or rollout timeline, leaving production companies, distributors, and unions scrambling to understand the scope.
One key question: Would the tariff apply to films shot partially in the U.S. and partially abroad? Many major productions are split between multiple countries for budget or narrative reasons.
A White House spokesperson told The Washington Post on Monday, May 5, that “the administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again.”
But that’s done little to ease anxiety in the entertainment world.
“In its current form, the tariff doesn’t make sense,” said Jay Sures, vice chairman of United Talent Agency. “Hollywood is global by nature. Trying to tax that out of existence will only drive jobs away.”
Producer Randy Greenberg echoed the concern online: “This will have the opposite effect. It will kill the movie industry faster.”
Why U.S. Films Go Abroad
While California, New York, and Georgia offer competitive tax incentives, many productions still choose to film overseas, where costs can be significantly lower and government subsidies more generous.
According to research by film analyst Stephen Follows, about one-third of top-grossing films from 2000 to 2019 were filmed at least partly outside the U.S. These include blockbusters like Harry Potter (UK), Inception (Canada and France), and even Avengers: Endgame, which, despite being largely shot in Georgia, filmed segments in London.
The tariff could drastically alter these production strategies and threaten international partnerships.
Global Pushback Begins
The backlash has already begun overseas. A senior British film official told The Guardian that the tariff “could decimate our film industry” and warned of job losses across Europe and the Commonwealth.
In Australia and New Zealand, film unions and production houses expressed concern that the U.S. might now seek to penalize popular co-productions or streaming content made outside its borders.
Legal Hurdles Ahead
Governor Gavin Newsom’s administration quickly weighed in, casting doubt on the legal viability of the proposal. Bob Salladay, Newsom’s senior communications advisor, told Deadline that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs in this manner.
“Tariffs are not listed as a remedy under that law. We believe this move is unconstitutional,” Salladay said.
Nevertheless, Newsom reaffirmed California’s commitment to its film industry, touting a plan to double the state’s film tax credit program to attract productions back from abroad.
Trump’s Cultural Strategy
The tariff plan is part of a broader campaign by President Trump to reassert American cultural dominance. Earlier this year, he appointed actors Jon Voight, Mel Gibson, and Sylvester Stallone as “special ambassadors to Hollywood.” Voight has reportedly met with union leaders and studio heads to push for stronger domestic production incentives.
There is also speculation that the administration may propose federal tax incentives to offset the effects of the tariff — though such measures could conflict with Trump’s promises to reduce the national debt.
No Timeline, No Clarity
No executive order has been issued and no legislation introduced. Yet the president appears determined.
“We are making very few movies now,” Trump told reporters on Sunday night. “They’re being made in other countries. That’s going to change — fast.”
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