President Donald Trump is starting a new phase in his tariff policies, this time focusing on movies made outside the United States.
In a post on his Truth Social platform Sunday night, Trump said he has directed the Department of Commerce and the Office of the U.S. Trade Representative to place a 100% tariff “on any and all Movies coming into our Country that are produced in Foreign Lands.”
He said, “The Movie Industry in America is DYING a very fast death,” and criticized other countries for offering filmmakers incentives to leave the U.S. He called this a joint effort by foreign governments and said it was a “National Security threat” that involves “messaging and propaganda!”
On Monday, the White House said it is working on how to follow through with Trump’s instructions.
“Although no final decisions on foreign film tariffs have been made, 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,” said spokesperson Kush Desai.
Many films are made in several countries, including the U.S. Big-budget movies like the upcoming “Mission: Impossible — The Final Reckoning” are often shot in multiple international locations.
For years, incentive programs have influenced where movies are made, pushing film production out of California and toward other states and countries like Canada and the U.K. that offer tax breaks.
Trump’s tariffs aim to steer consumers toward American-made products. In movie theaters, American movies already take up most of the space.
China has increased its own film production, with the animated hit “Ne Zha 2” making over \$2 billion this year, though almost all of that came from China itself. In North America, it only made \$20.9 million.
In New Zealand, government incentives have helped attract many Hollywood movies. The country earned billions in tourism from “The Lord of the Rings” and “Hobbit” movies. More recently, the “Minecraft” movie was filmed entirely in New Zealand. In 2023, U.S. productions brought NZ\$1.3 billion (around \$777 million) into the country, supported by NZ\$200 million in local subsidies.
New Zealand Prime Minister Christopher Luxon said he needed more information about Trump’s plans before responding but would continue promoting New Zealand as a filming destination. “We’ve got an absolutely world class industry,” he said. “This is the best place to make movies, period, in the world.”
The Motion Picture Association, which speaks for major U.S. studios and streaming services, did not respond to messages Sunday night.
Data from the MPA shows that U.S. movies earned \$22.6 billion in exports and brought in a trade surplus of \$15.3 billion in 2023.
Trump, a Republican, has taken strong steps as a “tariff man,” placing new taxes on goods from many countries. That includes a 145% tariff on Chinese goods and a 10% baseline tariff on imports from other nations, with the possibility of higher rates.
President Donald Trump speaks with reportersBy setting tariffs himself, Trump has greatly influenced trade and markets. Tariffs now cover cars, steel, and aluminum, and more products, including medications, are expected to be added soon.
Trump has often expressed concern about film production leaving the U.S.
Before taking office, he announced that actors Mel Gibson, Jon Voight, and Sylvester Stallone would serve as “special ambassadors” to Hollywood to bring it “BACK — BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”
In recent years, U.S. film and TV production has faced challenges, including the COVID-19 pandemic, the Hollywood strikes in 2023, and wildfires in Los Angeles. According to data from ProdPro, production in the U.S. dropped 26% in 2023 compared to 2021.
A survey from ProdPro found that none of the top five preferred filming locations were in the U.S., according to the Hollywood Reporter. Toronto, the U.K., Vancouver, Central Europe, and Australia were the top choices. California came sixth, followed by Georgia, New Jersey, and New York.
California has been hit especially hard. In the greater Los Angeles area, production was down 5.6% in 2023, the second lowest level since 2020, the height of the pandemic. In October, Governor Gavin Newsom proposed increasing the state’s Film & Television Tax Credit program from \$330 million to \$750 million per year.
Other U.S. cities such as Atlanta, New York, Chicago, and San Francisco have also used tax breaks to attract productions. Texas offers cash grants, while Georgia and New Mexico offer tax credits.
“Other nations have been stealing the movie-making capabilities from the United States,” Trump told reporters Sunday night after returning from a trip to Florida. “If they’re not willing to make a movie inside the United States we should have a tariff on movies that come in.”
