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President Donald Trump has proposed a 100% tariff on all films produced outside the U.S., claiming international movie production poses a national security threat and is contributing to Hollywood’s decline.
The announcement on Truth Social left entertainment executives, trade officials, and foreign governments grappling with the possible implications of a dramatic shift in U.S. film trade policy.
“The Movie Industry in America is DYING a very fast death,” Trump wrote. “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda! Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
U.S. Commerce Secretary Howard Lutnick responded on X, saying, “We’re on it.” While details remain unclear, a White House spokesperson confirmed the administration is “exploring all options” to enforce Trump’s directive and to “safeguard our country’s national and economic security while Making Hollywood Great Again.”
Trump further elaborated on his rationale during a brief exchange with CSPAN reporters, stating foreign governments were “giving big money” to attract U.S. filmmakers overseas and “Hollywood is being destroyed.” He added, “If they’re not willing to make a movie inside the United States, we should have a tariff on movies that come in.”
Trump’s claim that foreign films represent a national security risk suggests the administration may invoke Section 232 of the 1962 Trade Expansion Act. Under this provision, the Commerce Department could conduct an investigation lasting up to 270 days to determine whether foreign films endanger national security. Based on that finding, Trump could unilaterally impose tariffs.
The announcement has raised legal and logistical questions. Films are widely regarded as services rather than goods, making them less susceptible to traditional import tariffs. The Berman Amendment to the International Emergency Economic Powers Act of 1988 also prohibits restrictions on informational materials, including films, unless Congress intervenes.
Industry executives expressed confusion over how the administration would define a “foreign-made” film. Many Hollywood productions are shot overseas for cost savings, including upcoming blockbusters like Mission: Impossible – The Final Reckoning and Avengers: Secret Wars, which are being filmed in London and Sydney, respectively.
Tim Richards, CEO of Vue Entertainment, told BBC Radio, “A big part of this is what constitutes U.S. film. Is it where the money comes from, the script, the director, the talent, where it was shot?” He noted such distinctions are hard to apply in today’s globalized production ecosystem.
Economists warn the proposed tariff could backfire. The Motion Picture Association reported that in 2023, the U.S. film industry generated $22.6 billion in exports, resulting in a $15.3 billion trade surplus. Taxing foreign-produced films may invite retaliation, jeopardizing that surplus and impacting adjacent services like travel, insurance, and finance.
Producer Randy Greenberg criticized the proposal in a LinkedIn post, “Putting a tariff on Movies shot outside the U.S. will increase the cost of shooting and the studios will lobby the Exhibitors to raise ticket prices and then the audience will skip the theatre and then… well, you see where this is going.”
In Los Angeles, the issue comes amid a broader decline in domestic filming. According to FilmLA, on-location shoots in L.A. fell by 22.4% in the first quarter of 2025 compared to the same period in 2024. Television production dropped 30.5%, while feature films fell 28.9%.
City leaders in L.A. recently requested expedited proposals to cut film-related fees and ease permitting processes in a bid to restore local filming. They cited outmigration of productions to states and countries offering better incentives as a key challenge to reviving Hollywood.
The proposal has raised concerns about the long-term economic implications for Hollywood and its ability to compete in a globalized entertainment market. Critics argue imposing tariffs could exacerbate the challenges already facing the American film industry, particularly as it grapples with increasing competition from abroad.
Foreign-made films – many of which are supported by significant government subsidies – have taken a larger share of the global market in recent years, offering audiences new, diverse stories and cinematic styles.
Some experts have also pointed out the tariffs could reduce the number of foreign films available in the U.S. market. While foreign films represent a smaller share of the U.S. box office, they often fill an important niche, attracting cinephiles and audiences seeking alternative content. The proposed tariffs could decrease the diversity of films available in the U.S., further reducing Hollywood’s already limited variety of offerings.
While the Trump administration appears resolute about pursuing the tariff idea, industry leaders continue to voice skepticism about its feasibility and impact.
