Trump seeks 100% tariffs on foreign films amid Hollywood outsourcing concerns

[WORLD] Former President Donald Trump on Sunday announced plans to impose sweeping tariffs on all films produced outside the United States, arguing that Hollywood is suffering due to the growing trend of American filmmakers shooting overseas.

The proposed policy marks a sharp escalation in Trump’s long-running critique of the entertainment industry, which he has frequently accused of promoting liberal ideologies and prioritizing lower-cost foreign locations. Over the past decade, major U.S. film franchises—including those from Marvel and the Mission: Impossible series—have increasingly shifted production abroad, lured by favorable tax breaks and reduced labor costs in countries like the United Kingdom, Canada, and Australia.

The announcement comes amid broader scrutiny of the administration’s trade agenda, which has sparked controversy over its extensive use of tariffs against U.S. trading partners.

Trade policy experts caution that the proposed film tariffs could invite retaliatory measures from key allies. In the UK, the British Film Institute condemned the idea as a “direct threat” to the nation’s $12 billion film and television production sector. Canadian officials have also indicated they may consider countermeasures targeting American media firms operating within Canada.

“I am authorizing the Department of Commerce and the U.S. Trade Representative to immediately begin the process of implementing a 100% tariff on any and all movies entering the United States that are produced in foreign countries,” Trump wrote on Truth Social.

The proposed policy raises a host of logistical and legal uncertainties, including whether films that are only partially shot abroad would be subject to the full tariff. Legal analysts suggest the plan could run afoul of World Trade Organization rules, which generally restrict discriminatory tariffs on cultural goods. The U.S. previously lost a WTO dispute in 2009 over its ban on foreign online gambling services—an outcome that may serve as a precedent for opposition.

Trump’s announcement also follows recent moves by China to curb the number of American films entering its market, widely seen as a retaliatory response to U.S. trade measures. The Chinese box office has become a vital source of revenue for Hollywood, with films like Avatar: The Way of Water grossing nearly $250 million there. Industry observers warn that continued trade tensions could further harm a sector still recovering from pandemic-related disruptions.

“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 U.S.,” Trump posted.

Still, industry data paints a more complex picture. While some mid-budget productions face financial headwinds, 2023 saw record global earnings for Hollywood, driven by blockbuster successes such as Barbie and Oppenheimer. Analysts point out that “runaway production”—shooting films abroad—has long been a cost-saving strategy for studios and plays a key role in sustaining profitability.

“Hollywood, and many other areas within the U.S., are being devastated,” Trump added, suggesting the trend posed a national security concern. The administration has not yet clarified how the tariffs would be implemented or how they would affect the broader entertainment landscape.

Notably absent from Trump’s announcement was any reference to television programming, a booming segment of the industry fueled by global expansion from streaming platforms such as Netflix and Amazon. With many series now produced in countries like South Korea and Spain, a tariff targeting only feature films could end up benefiting digital streaming services, further accelerating the shift away from theatrical releases—a shift already reshaping Hollywood economics.