Trump’s trade war hits movies: 100% tariff on non-US films announced

US President Donald Trump said late Sunday he is authorising a 100% tariff on movies produced outside the United States, escalating his hardline trade agenda into the global film industry.

In a post on his Truth Social platform, Trump accused foreign governments of using subsidies to lure US film production overseas, which he said is contributing to the rapid decline of the American movie industry.

“The Movie Industry in America is DYING a very fast death,” Trump wrote. “Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. ... This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”

Trump said he had directed the US Department of Commerce and the Office of the US Trade Representative to immediately begin imposing a 100% tariff on all movies produced in foreign countries and imported into the United States.

It remains unclear how such a tariff would be implemented, particularly for films with multinational production and financing. Many Hollywood blockbusters, including upcoming titles like Mission: Impossible – The Final Reckoning, are shot in multiple countries, which complicates the classification of a film’s origin.

Foreign incentive programs have long drawn US productions abroad. Canada, the UK, and Australia, among others, offer robust tax incentives that often outweigh what’s available in California and other US states. A 2024 survey by industry tracker ProdPro found that Toronto, the UK, Vancouver, Central Europe, and Australia ranked as the top global production hubs.

US film production has also been hampered by recent disruptions, including the COVID-19 pandemic, twin Hollywood guild strikes in 2023, and natural disasters such as wildfires in the Los Angeles area. Production in the US dropped 26% last year compared with 2021, according to ProdPro.

The announcement follows a move by China’s Film Administration last month to curtail the number of US films allowed in Chinese theatres, citing ongoing tariff disputes. The agency warned that the new restrictions would “inevitably further reduce the domestic audience’s favorability toward American films.”

Trump has long criticised the outsourcing of US film production and previously tapped actors Mel Gibson, Jon Voight and Sylvester Stallone to lead efforts to “bring Hollywood BACK—BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”

“Other nations have been stealing the movie-making capabilities from the United States,” Trump told reporters at the White House on Sunday. “If they’re not willing to make a movie inside the United States, we should have a tariff on movies that come in.”