President Donald Trump announced that he will impose a 100% tariff on all movies produced outside the United States. The announcement, made on his Truth Social platform, criticized foreign countries for what he called “stealing” the American film industry.
“Our movie making business has been stolen from the United States of America, by other Countries, just like stealing ‘candy from a baby,’” Trump wrote. He also targeted California Governor Gavin Newsom, calling him “weak and incompetent,” and noted that the move would directly affect Hollywood.
The administration has not specified when the tariff will take effect or how it will be calculated, particularly for films partially shot abroad. Trump first threatened similar measures in May, citing tax incentives offered by other countries that have encouraged filmmakers to work overseas.
Industry insiders expressed skepticism about the feasibility of the proposal. One Hollywood source explained that “on first blush, it’s shocking,” but added that enforcing such a tariff would be highly complex and beyond the administration’s jurisdiction.
American actors and directors generally prefer to work domestically, but studios often find it cheaper to film abroad due to lower labor costs and tax benefits. Jay Sures, vice chairman of United Talent Agency, emphasized in May that “it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper.”
The announcement had an immediate effect on the stock market. Shares of Netflix opened down 1% Monday, while other movie-related companies, including AMC and Disney, saw slight gains. Analysts noted that the U.S. box office has struggled to return to pre-pandemic levels, with domestic gross revenues topping out at just under $12 billion in 2018 before falling sharply in 2020.
