U.S. President Donald Trump on Sunday announced a sweeping new tariff policy targeting all foreign-produced films, claiming that Hollywood is being “devastated” by the growing trend of U.S. studios filming overseas to take advantage of international incentives.
In a fiery post on his Truth Social platform, Trump said he had directed both the Department of Commerce and the U.S. Trade Representative to begin the process of implementing a 100% tariff on all films made outside the United States, regardless of studio origin.
“WE WANT MOVIES MADE IN AMERICA, AGAIN!” the president wrote, calling the outsourcing of film production a “National Security threat.”
Commerce Secretary Howard Lutnick reposted Trump’s directive shortly after, writing simply: “We’re on it.”
The announcement comes amid intensifying criticism of the White House’s aggressive trade stance, which has seen high-profile tariff escalations, particularly against China. Beijing responded last month by slashing the number of U.S. films it allows to screen domestically a major blow to Hollywood’s global earnings.
Trump argued that the American film industry is facing rapid decline due to other countries luring away productions with generous subsidies and tax breaks.
“The Movie Industry in America is DYING a very fast death,” Trump claimed. “Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States.”
No implementation details were provided in Sunday’s announcement, leaving key questions unanswered including whether the tariff would apply to streaming-only releases, television series, or co-productions.
Hollywood’s Economic Clout at Risk?
Hollywood remains one of America’s most lucrative industries, contributing more than 2.3 million jobs and generating $279 billion in sales in 2022, according to the Motion Picture Association. Yet, in the wake of COVID-era disruptions and last year’s industry-wide labor strikes, the sector has struggled to return to pre-pandemic momentum.
A January 2025 survey by production tracker ProdPro revealed that none of the top five preferred filming locations for studio executives in 2025–2026 were in the U.S., with Toronto, London, Vancouver, Central Europe, and Australia taking the lead. California, once the heart of global film production, ranked sixth underscoring how far the industry has drifted from its traditional base.
Industry analysts say tax incentives abroad, combined with a high-cost domestic production environment, have fueled the relocation trend.
Politics Meets Popcorn
Trump’s move to revive domestic film production is also seen as a political gambit, tapping into economic nationalism and his long-standing criticism of the entertainment industry. Hollywood has been a vocal opponent of Trump’s presidency, with most high-profile celebrities supporting Democrat Kamala Harris in the 2024 election.
In contrast, Trump has cultivated alliances with a handful of conservative actors, naming Sylvester Stallone, Mel Gibson, and Jon Voight as “special envoys to Hollywood” earlier this year. He said the trio would help make the U.S. film industry “STRONGER THAN EVER BEFORE.”
Still, the impact of a blanket tariff on foreign-made films particularly in an era of globalized production and streaming platforms remains unclear. Critics warn such a move could provoke international retaliation, drive up costs for studios, and complicate global distribution deals.
With no formal timeline or legislative process yet outlined, the industry now waits to see whether Trump’s order marks a symbolic flex or the beginning of a radical realignment in how American cinema does business.
