NEW YORK – President Donald Trump has intensified his tariff strategy by setting his sights on films produced outside the United States. In a statement on his social media platform, Truth Social, made on Sunday night, Trump announced that he has permitted the Department of Commerce and the Office of the U.S. Trade Representative to impose a tariff as high as 100% on all foreign-produced films entering the U.S.
Trump expressed concern over what he perceives as a declining American movie industry, accusing foreign nations of luring filmmakers with attractive incentives. “The Movie Industry in America is DYING a very fast death,” he wrote, deeming it a national security threat due to its potential for messaging and propaganda.
The White House commented on Monday that they are currently examining ways to adhere to the president’s directive. A spokesperson, Kush Desai, indicated that the administration is considering all possibilities to align with Trump’s vision of revitalizing Hollywood while ensuring national and economic security.
It’s common practice for both major and indie films to be shot in the U.S. and abroad. Upcoming Hollywood blockbusters, such as “Mission: Impossible — The Final Reckoning,” have locations spanning globally.
Production incentives have long jam-packed initiatives where movies are made, drawing production out of traditional states like California to locations benefiting from tax breaks, like Canada and the UK.
The intention behind these tariffs is to sway consumer interest toward American-made movies. Despite this, American produced films still maintain dominance in the domestic market. Meanwhile, countries like China see significant success with domestic productions but also face challenges in expanding their appeal abroad.
New Zealand has been successful with government incentives that have increased tourism and revenue, thanks significantly to their participation in major trilogies like “The Lord of the Rings” and recent projects like the “Minecraft” movie. Prime Minister Christopher Luxon expressed that he would be awaiting further elaboration on Trump’s policies but expressed anticipation for continued collaborations with international filmmakers.
There was no immediate response from the Motion Picture Association, despite their documented significance in global film markets, with American films exporting billions annually.
Trump’s tendencies to impose tariffs remain evident, following consistent policy to apply taxes on foreign goods to wield substantial influence over market dynamics, notwithstanding political ripples that arise from such measures.
Trump’s stance on the film industry moving abroad was underscored when he selected celebrities like Mel Gibson and Jon Voight as figures to rejuvenate Hollywood.
The U.S. has struggled with film production pressures, exacerbated by the pandemic, labor strikes, and natural disasters. These factors contributed to a downturn in production figures last year.
California, typically a hub for production, fell in rankings among preferred filming locations, with international spots like Toronto and the UK gaining higher favorability. Efforts to revitalize local production include proposals for increased tax credits, as seen in California and other major U.S. cities.
Trump criticized foreign entities for “stealing the movie-making capabilities” from the U.S., supporting a tariff on films not produced domestically. Challenging other nations’ productions, he emphasized a need for protective tariffs to bolster American film industries.