President Donald Trump has announced a plan to impose a 100% tariff on films made outside the United States, a move intended to revitalize the American film industry [1, 4]. This proposal comes amid concerns that Hollywood is facing a rapid decline due to foreign competition and incentives [1, 9]. Trump has directed the Department of Commerce and the U.S. Trade Representative to begin instituting the tariff [12, 13].
Trump's announcement, made on May 4, 2025, cites that other countries are offering incentives that draw filmmakers and studios away from the U.S., which he views as a national security threat [1, 5]. He believes this undermines American culture and wants to ensure more movies are made in America [1, 13].
The entertainment industry has reacted with alarm and confusion [5, 11]. Questions remain about how the tariff would be implemented, including whether it applies to streaming content and productions split between the U.S. and other countries [5, 11]. Some analysts are concerned about potential retaliatory measures from other countries [5, 14]. Despite the uncertainty, Trump plans to meet with industry officials to discuss the proposal [5].
California Governor Gavin Newsom has criticized the plan, calling it "economic malpractice" [11]. Meanwhile, industry experts are evaluating the potential impact on Hollywood and the global entertainment industry, with many studios and streamers scrambling to understand the legal basis and potential scope of the proposed tariffs [5, 11].
The proposed tariff is part of a broader trade strategy by the Trump administration to address unfair trade practices and bolster domestic industries [2, 3]. The tariffs are scheduled to take effect in April 2025 and will remain until the trade deficit is resolved [6, 7].