Los Angeles, CA — Hollywood has responded with skepticism and concern following former U.S. President Donald Trump’s unexpected announcement of a 100% tariff on all foreign-produced films, a policy many in the entertainment industry describe as ill-conceived and potentially disastrous.
Trump made the announcement Sunday on his social platform, Truth Social, writing: “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!”
The statement sent shockwaves through the industry, sparking confusion, emergency meetings, and stock fluctuations among entertainment companies. Legal and industry experts were quick to criticize the feasibility and implications of the proposal.
“It makes no sense,” said entertainment attorney Jonathan Handel, speaking to AFP. He pointed out that major U.S. productions—including franchises like James Bond and Mission Impossible—often film abroad due to narrative needs and creative advantages. “If the stunt is Tom Cruise climbing up the Eiffel Tower, what are we supposed to do, shoot at the replica Eiffel Tower in Las Vegas? It’s just nonsensical,” he said.
Handel also raised questions about enforceability, noting that movies are intellectual property rather than physical goods. “You can buy a movie ticket, but you don’t buy a movie the way you buy a piece of clothing or an automobile,” he said, adding that trying to tax foreign-made films at the border could do more harm than good. “It would reduce production, increase costs, and shrink the number of films available to theaters and streaming platforms, hurting the entire distribution side of the business.”
Industry in Limbo
Entertainment unions like SAG-AFTRA expressed a cautious response, saying they were awaiting more details but remained committed to policies that boost domestic production. “We will continue to advocate for policies that strengthen our competitive position, accelerate economic growth and create good middle-class jobs for American workers,” the union said in a statement.
Still, the announcement triggered unease. Several major studios reportedly held crisis meetings, according to Hollywood trade outlets. “I can’t see his target here other than confusion and distraction,” said one anonymous distribution executive quoted by Deadline. “Let’s hope this only encourages desperately needed increases in U.S. state tax incentives being implemented ASAP.”
Many insiders argue that competitive tax incentives offered by countries like the UK, Canada, and Ireland—not the lack of protectionism—are the primary reason why U.S. productions go abroad. “The need is for rebates, not tariffs,” said a Hollywood financier, also speaking to Deadline. “Tariffs will just choke the remaining life out of the business.”
Hollywood in Crisis
Trump’s remarks arrive at a precarious time for the industry. Still reeling from historic writers’ and actors’ strikes in 2023, Hollywood has struggled to rebound. In Los Angeles, 2024 saw a record low number of filming days—excluding the pandemic-related shutdown in 2020.
Much of the downturn is attributed to productions being relocated overseas, drawn by financial incentives and lower costs. As uncertainty grows, the broader question remains whether Trump’s proposal is a political statement or a genuine policy direction.
White House Clarification
Despite Trump’s emphatic social media post, the White House offered a more measured tone on Monday, stating, “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.”
Trump himself told reporters that the intent was not to harm the film industry but to boost its domestic presence. “I’m not looking to hurt the industry. I want to help the industry. But they’re given financing by other countries,” he said, while taking a swipe at California Governor Gavin Newsom for allegedly failing to retain productions in-state.
“Our film industry has been decimated by other countries taking them out, and also by incompetence,” Trump said. “He’s just allowed it to be taken away from, you know, Hollywood.”
As the industry waits for clarity, insiders warn that uncertainty alone could have lasting consequences for production planning, investment, and employment in the American film sector.