Hollywood is Dying: U.S. President Wants 100% Tariffs on Foreign Film Production

Source: YouTube

President Donald Trump is preparing to impose a 100% tariff on foreign film production, citing it as a direct threat to American workers and national messaging. The announcement follows weeks of trade escalation under his revived America First platform. In a statement posted on Truth Social, Trump accused foreign governments of offering tax incentives that undercut the U.S. movie industry, claiming it is now in “a very fast death.”

Film production stands at the heart of his argument. He claims that other nations have used financial incentives to attract big-budget movies, weakening job opportunities in California and other production hubs. Trump said the tariffs will cover “any and all movies coming into our country that are produced in foreign lands,” although it remains unclear how that definition will be applied.

Will Trump Bring Back Film Production to the U.S.?

A key component of the policy is the belief that taxing imported films will bring jobs back to the U.S. and reestablish Hollywood’s global dominance. Supporters say the exodus of film production has hollowed out entire trades. According to the International Alliance of Theatrical Stage Employees, more than 18,000 jobs have disappeared in the past three years. Union leaders blame rising labor costs in the U.S. and aggressive foreign subsidies for the shift.

One clear goal of the tariff is economic revival. Trump argues that America has lost control over not just its jobs but also its messaging. In his words, “It is, in addition to everything else, messaging and propaganda!” Commerce Secretary Howard Lutnick affirmed the administration’s stance, responding publicly, “We’re on it.”

Supporters point to declining domestic spending in film production as evidence of a problem. In 2024, the U.S. saw a 26% drop in local production spending. Meanwhile, countries such as the UK, Canada, and Australia posted increases. These nations have attracted American studios with generous tax rebates and access to skilled crews, which in turn shifts employment overseas.

Film workers in Los Angeles, Atlanta, and Chicago are now among those pushing for federal action. They argue that only a strong trade response can reverse the film production diaspora. Some producers say it now costs less to shoot in Hungary or Wellington than in California. Others note that the disappearance of DVD sales and shrinking theater audiences has forced studios to cut costs wherever possible.

A Closer Look at the Global Film Production Landscape

However, the proposed policy has triggered criticism from economists, global trade experts, and even U.S. studio representatives. The primary objection is that film production is not a tangible product but a service. Unlike cars or electronics, movies are intellectual property. According to the Motion Picture Association, the U.S. runs a positive trade balance in film services across every major global market.

Opponents also question how the tariff would be enforced. Would it apply to a U.S. film shot in Canada? Or a foreign film distributed by a U.S. company? Films such as Wicked or Deadpool & Wolverine are produced by American studios but filmed almost entirely abroad. Others, such as streaming-exclusive content, blur traditional distribution models altogether.

Critics warn that tariffs could disrupt international partnerships and audience access as well. Platforms like Netflix and Amazon rely heavily on global content pipelines. Cutting off or taxing that flow may result in fewer options for viewers and reduced revenue for American companies. Even modest retaliation from trading partners could damage export opportunities for U.S.-produced films.

Entertainment consultant Kathryn Arnold believes a better approach would entail offering stronger domestic incentives rather than imposing international penalties. She notes that states like Georgia and New Mexico have successfully attracted major productions with local tax credits and proved that cost-effective incentives can work without damaging international cooperation.

However, some critics warn that applying trade-war logic to an industry built on collaboration is a fundamental misunderstanding of how movies are made. Modern film production often spans multiple countries, and trying to isolate “American” content through tariffs could paralyze development. According to UCLA lecturer Tom Nunan, “It’s not black or white like that.”

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