Amid rising concerns about the exodus of film productions from Hollywood, former U.S. President Donald Trump has announced a sweeping 100% tariff on all movies produced outside the United States, framing the move as a defense of American culture and a measure to revive the nation’s dwindling film industry.

Trump Declares Film Industry Crisis a National Security Risk

On Sunday, Trump issued a forceful statement on his social media platform Truth Social, proclaiming that foreign nations have waged what he called a “concerted effort” to destroy the American film industry by luring productions overseas with lucrative financial incentives. He called this not only an economic threat but a matter of national security.

“This is a concerted effort by other Nations and, therefore, a National Security threat,” Trump wrote. “It is, in addition to everything else, messaging and propaganda.”

To combat this perceived crisis, Trump said he had authorized the Department of Commerce and other agencies to immediately begin the process of implementing a 100% tariff on all foreign-produced films entering the U.S. market.

“WE WANT MOVIES MADE IN AMERICA, AGAIN!” he concluded in all caps.

Unclear Details Spark Confusion Among Industry Insiders

Commerce Secretary Howard Lutnick echoed Trump’s announcement, simply posting “We’re on it” on X (formerly Twitter), but neither Trump nor Lutnick offered specifics on how the tariffs would be applied.

Key questions remain unanswered:

• Will the tariffs cover only films shown in theaters, or include those streamed on platforms like Netflix and Amazon Prime?

• Will the tariffs be based on production budgets, distribution costs, or box office performance?

These uncertainties left Hollywood executives scrambling for answers on Sunday night. The Motion Picture Association, which represents major studios, declined to issue an immediate response.

Industry Already Shifting Abroad Amid Global Incentives

Trump’s move comes as film and TV production has steadily migrated overseas over the last two decades. Countries such as Canada, the UK, Australia, and Central European nations have rolled out generous tax credits and subsidies to attract big-budget productions.

Ampere Analysis estimates that global spending on content will reach $248 billion in 2025. Countries aggressively pursuing a share of that investment have gained ground at the expense of traditional American production hubs like Los Angeles.

All major U.S. media companies—including Walt Disney, Netflix, and Universal Pictures—routinely film overseas to capitalize on these savings.

According to research firm ProdPro, approximately 50% of U.S. spending on projects exceeding $40 million occurred outside the country in 2023.

International Backlash Begins

Trump’s announcement prompted swift reactions from global allies whose economies benefit significantly from Hollywood productions.

In Australia and New Zealand—popular filming locations for Marvel blockbusters and fantasy epics like The Lord of the Rings—government leaders pledged to stand by their creative industries.

In the UK, Philippa Childs, head of the media union Bectu, warned that the proposed tariffs could be catastrophic for the British film sector. She said, “These tariffs, coming after COVID and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering.”

She further emphasized the ripple effect on the livelihoods of tens of thousands of freelance workers whose careers depend on international film productions.

Film and high-end television production in the UK hit a record £5.6 billion ($7.45 billion) in 2024, reflecting a 31% rise from the previous year, according to the British Film Institute.

U.S. Film Industry Faces Steep Decline

Back home, industry data points to a grim trend. Film and television production in Los Angeles has dropped nearly 40% over the last decade, according to FilmLA, a nonprofit that monitors local filming activity.

Wildfires in January 2025 intensified concerns, displacing crews and further pushing productions out of California. Many behind-the-scenes workers—camera operators, sound engineers, costume designers—are reportedly considering permanent relocations.

California currently ranks sixth in production desirability behind Toronto, the UK, Vancouver, Central Europe, and Australia, based on a recent ProdPro survey of studio executives.

Hollywood unions and producers have repeatedly urged California Governor Gavin Newsom to increase the state’s tax incentives to prevent further decline.

Tariff’s Economic Fallout Could Be Severe

Trade analysts and policy experts warn that Trump’s film tariff could ignite retaliatory measures from U.S. allies and wreak havoc on the entertainment industry.

William Reinsch, a former Commerce Department official and now senior fellow at the Center for Strategic and International Studies, criticized the decision, saying, “The retaliation will kill our industry. We have a lot more to lose than to gain.”

Reinsch questioned the legal basis for framing this policy as a national security issue, arguing that such justifications would face intense scrutiny under international trade law.

Others echoed his concerns, warning that rather than revitalizing domestic production, the tariffs could deter studios from investing altogether—reducing the number of projects and hurting American jobs.

Scott Roxborough, Europe bureau chief of The Hollywood Reporter, observed, “I think the most likely consequence is not that more productions will be done in America, but probably that just fewer productions will be made.”

A Broader Trump Strategy on Cultural Trade?

Trump’s announcement fits into a broader pattern of his approach to trade and culture. During his presidency and afterward, he championed “America First” policies across industries, including steel, agriculture, and technology.

In January, he appointed Hollywood icons Jon Voight, Sylvester Stallone, and Mel Gibson to lead efforts to revitalize the American entertainment sector—tapping into nationalist sentiment and nostalgia for Hollywood’s golden age.

Trump’s cultural protectionism has drawn praise from conservative circles who view foreign content as a vehicle for unwanted values or “propaganda,” but it has also alarmed global partners and free trade advocates.

Conclusion: A High-Stakes Gamble for Hollywood’s Future

Trump’s sudden imposition of a 100% tariff on foreign-made films has thrown the global entertainment industry into turmoil. While the move aims to reignite U.S.-based production and bolster national pride, the lack of implementation details and the risk of international retaliation pose significant economic and diplomatic risks.

With billions of dollars, tens of thousands of jobs, and international relationships at stake, the coming weeks will test the resilience of Hollywood—and the wisdom of leveraging tariffs as a tool to shape cultural and economic policy.