Trump Proposes 100% Tariff on Foreign-Made Films, Stirring Industry Concerns

The American film industry found itself in a state of apprehension on Sunday evening following a dramatic declaration by US President Donald Trump. In a post on Truth Social, the president announced plans to impose a 100% tariff on all films produced “in foreign lands” and brought into the United States. Framing the situation as a national security threat, Trump blamed overseas incentives for drawing American filmmakers abroad, vowing to bring film production back to US soil.

Runaway Productions and Economic Shifts

Runaway production has long been a concern for the US film sector, as studios, streamers, and independent producers increasingly choose to shoot in locations such as Canada, Eastern Europe, the UK, and Australia. These regions offer lucrative incentives, reduced costs, and experienced international crews, advantages that American locations like Los Angeles struggle to match. Hollywood has gradually shifted towards global production models, resulting in a significant decline in domestic filming activity. FilmLA recently reported a 28.9% drop in feature production levels in the first quarter of the year, identifying 2024 as the second least productive year since the pandemic-hit 2020.

Trump’s statement highlighted his disapproval of this trend, asserting that the US film industry was “dying a very fast death”. He ended his post emphatically, stating: “We want movies made in America, again!” However, the implications of the proposed tariffs remain murky. There has been no official comment from major studios, and many questions persist, such as whether the tariffs will apply to post-production services, affect American films shot abroad, or be applied retrospectively.

Trade Complexities and Global Ramifications

While the proposed tariff appears targeted at foreign-made films, experts remain uncertain about its legality and implementation. Films are categorised as digital goods, and a World Trade Organisation moratorium currently prohibits tariffs on digital trade. It is also unclear whether television content will be affected, as Trump’s statement only mentioned film. The unpredictability of Trump’s policymaking adds further ambiguity, with the possibility that the declaration may be softened or replaced with alternative measures.

Meanwhile, US productions such as Marvel’s Avengers: Doomsday, currently filming in the UK, and Universal’s The Odyssey, partly shot in Morocco, face uncertain futures under the proposed regulations. Netflix, which operates a large international slate, and Disney, which frequently utilises UK studios, may also be heavily impacted. Independent producers preparing for the Cannes market expressed alarm, given the potential disruption to rights trading and co-productions. The possibility of reciprocal tariffs by other countries adds another layer of risk, especially as China recently moved to restrict Hollywood imports amidst rising trade tensions.

California Governor Gavin Newsom is pushing to expand the state’s film and television tax credit programme, aiming to counteract the draw of overseas production. However, federal action on incentives remains uncertain, complicated further by political rivalries, most notably with California Senator Adam Schiff, a known Trump critic.

Read More: Trump’s Executive Order Aims to Ease Burden of Stacked Auto Tariffs

Conclusion

President Trump’s announcement has introduced significant uncertainty into an already fragile US film industry. With no concrete timeline or implementation details provided, studios, independents, and international partners now face a period of speculation and concern. As trade complexities intersect with production realities, the full impact of this proposal on American and global cinema remains to be seen.

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