In a bold move that could shake up global film distribution, United States President Donald Trump announced via his social media platform, Truth Social, on Sunday evening that he has directed federal authorities to implement a 100% tariff on movies made outside the US and brought into the country.
“The Movie Industry in America is DYING a very fast death. Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States,” Trump stated. “Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
While the logistics of such a policy remain unclear, experts point out that movies are classified as intellectual property rather than physical goods, making them traditionally exempt from tariffs. Nonetheless, non-tariff trade barriers, like tax incentives and regulations, could still impact international content in the U.S. market.
Countries like Canada and Ireland have become hotspots for film and television production, thanks to generous tax incentives.
Cities such as Toronto and Dublin now host numerous American productions, prompting California Governor Gavin Newsom to propose significant tax breaks to lure filmmakers back to the state.
“Hollywood, and many other areas within the U.S.A., are being devastated,” Trump added. “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”
Though Trump paints a dire picture, the U.S. film industry isn’t entirely in crisis. The domestic box office has seen a major shift since the pandemic, with a move toward streaming over theatrical releases.
U.S. box office revenue peaked at nearly $12 billion in 2018, plummeted to around $2 billion in 2020 due to COVID-related closures, and has yet to return to pre-pandemic highs, staying below $9 billion annually.
Streaming services, mostly owned by major American studios, have also struggled financially.
While Netflix has long been profitable, platforms like Disney+ and Max only recently turned their first profits, and several others are still in the red.
Critics suggest that targeting foreign film imports may not alleviate the challenges faced by Hollywood. Many U.S. productions are filmed overseas to capitalize on lower costs and tax perks.
While Trump has previously imposed traditional tariffs on physical goods, ranging from 10% to a staggering 145% on Canadian imports, his proposed film tariff marks a potentially unprecedented step toward regulating intellectual property as a tradable commodity.
If implemented, this initiative would be the first significant U.S. tariff targeting a service rather than a physical product.
