Trump imposes 100% tariffs on foreign films, calls them a national security threat
Synopsis
Donald Trump has announced a 100% tariff on foreign films, calling them a national security threat. The move aims to protect the US film industry from global competition, but it may trigger retaliation and harm Hollywood's international market.
US: In a surprising move, former US President Donald Trump announced a 100% tariff on all films "produced in foreign lands". The decision, made public via his Truth Social platform on Sunday, marks a bold step in his ongoing efforts to protect the US film industry, which he claims is suffering due to the competitive incentives offered by other countries to attract American filmmakers.
Trump referred to the influx of foreign productions as a "concerted effort by other nations", describing it as a "national security threat". He argued that these foreign incentives are pushing the US film industry into a rapid decline, causing significant economic losses and undermining domestic filmmaking.
“This is, in addition to everything else, messaging and propaganda!” Trump added in his post, emphasising that the US should focus on producing movies on its home turf. “WE WANT MOVIES MADE IN AMERICA, AGAIN!” he declared.
Commerce secretary Howard Lutnick posting on X said: “We’re on it.” Neither Lutnick nor Trump provided any details on the implementation.
The announcement comes at a time when film and television production in Los Angeles has seen a nearly 40% decline over the last decade, according to FilmLA, a non-profit organisation tracking regional production trends. The drop in production coincides with growing global competition, as various governments around the world have offered increasingly attractive tax credits and cash rebates to draw major film productions, further depleting the US film industry's market share.
In addition, the imposition of the tariffs could exacerbate the trade tensions between the US and other countries, particularly China, which is the world’s second-largest film market. In response to Trump's earlier trade policies, China had already reduced the number of American movies allowed into the country. This has led to a decline in Hollywood’s market presence in one of its key international markets.
The move to impose tariffs on foreign films has sparked concerns within the US film industry. William Reinsch, a former senior commerce department official and a fellow at the Centre for Strategic and International Studies, warned that the retaliation against such tariffs could severely damage the US film industry. “The retaliation will kill our industry. We have a lot more to lose than to gain,” he said, adding that it would be difficult to justify such actions on national security grounds.
As the world’s largest producer of films, the US could face substantial challenges if other countries follow suit with retaliatory measures. The global film industry is worth billions, and such trade restrictions could disrupt international collaborations and access to major markets, causing long-term consequences for Hollywood.