President Donald Trump has fired off a fresh shot in his ongoing trade wars — this time, targeting foreign films.
Taking to his Truth Social platform on Sunday night, Trump announced that he has authorized the Department of Commerce and the U.S. Trade Representative to impose a sweeping 100% tariff on all films produced outside the United States.
“The Movie Industry in America is DYING a very fast death,” Trump declared, lamenting the increasing number of productions lured abroad by foreign incentives. “This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda!”
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In response, the White House stated Monday that it is reviewing how best to act on the president’s order.
“Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump’s directive to safeguard our country’s national and economic security while Making Hollywood Great Again,” said spokesperson Kush Desai.
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While many modern productions are a patchwork of global filming locations, including big-ticket projects like “Mission: Impossible — The Final Reckoning”, Trump’s directive aims to reverse this global spread and refocus production on U.S. soil.
Over the past decade, competitive tax breaks and incentive programs in places like Canada and the U.K. have pulled film projects away from California. These financial perks have reshaped the global filmmaking landscape, drawing productions where costs are lower and returns higher.
Trump’s strategy fits into a broader pattern: use tariffs to shift consumer behavior. In theaters, domestic movies already command the lion’s share of box office receipts. But Trump’s administration argues that further protection is needed to halt the bleed of American cultural production.
China, now a major player in global cinema, recently scored a massive domestic hit with “Ne Zha 2,” grossing over $2 billion, though its performance outside mainland China was negligible, with just $20.9 million earned in North America.
New Zealand, meanwhile, has leaned hard into its film incentives. Famous for hosting productions like the “Lord of the Rings” and “Hobbit” trilogies, it continues to attract big-budget projects. The entire “Minecraft” movie was recently filmed there, with U.S. productions delivering NZ$1.3 billion ($777 million USD) in economic impact in 2023 alone — all for NZ$200 million in subsidies.
Asked for comment, New Zealand Prime Minister Christopher Luxon said he would reserve judgment until Trump’s policy details become clearer, but reaffirmed the country’s commitment to attracting film projects globally. “We’ve got an absolutely world class industry,” he said. “This is the best place to make movies, period, in the world.”
The Motion Picture Association, which represents major U.S. studios and streaming platforms, did not immediately respond to inquiries on Sunday evening, according to AP.
Data from the MPA underscores Hollywood’s global dominance. In 2023, U.S.-produced films generated $22.6 billion in export revenue and contributed a $15.3 billion trade surplus.
Trump, who has proudly referred to himself as “tariff man,” continues to reshape trade with sweeping import taxes — including a 145% levy on Chinese goods and a general 10% tariff on all other imports, with threats of even steeper penalties.
These unilateral moves have granted him significant leverage over international commerce, creating economic ripple effects and increasing political tensions. Recent and upcoming tariffs cover a wide swath of industries, from autos to pharmaceuticals.
Trump has voiced concerns for years about the outsourcing of film production. Before assuming office, he appointed actors Mel Gibson, Jon Voight, and Sylvester Stallone as “special ambassadors” for Hollywood, vowing to make the industry “BACK — BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!”
U.S. film production has faced multiple setbacks in recent years — from COVID-19 disruptions and industry strikes to wildfires in Los Angeles. According to ProdPro, a production data tracker, overall filming in 2023 was down 26% from 2021.
The decline has been particularly sharp in California. FilmLA reports that L.A.-area production dipped 5.6% last year — the lowest since the pandemic peak in 2020. In October, Governor Gavin Newsom proposed a major expansion to the state’s tax credit program, boosting it from $330 million to $750 million annually.
Meanwhile, cities like Atlanta, New York, and Chicago continue to court productions with competitive incentives. Texas offers cash grants, while Georgia and New Mexico lean on tax credits.
“Other nations have been stealing the movie-making capabilities from the United States,” Trump told reporters Sunday after returning from Florida. “If they’re not willing to make a movie inside the United States we should have a tariff on movies that come in.”
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