President Donald Trump said he would meet with Hollywood executives as he plans to impose 100% tariffs on films made overseas on films made.
“So we're going to meet the industry,” Trump said Monday afternoon. “I want to make sure they're happy with it because we're all about work.”
Monday’s film and entertainment data worked to explain Trump’s instructions and posted to his social media account Sunday night, the directive said the U.S. film industry was “dying” and regarded foreign films as a national security threat to spread propaganda to American audiences.
“We hope to make American movies again!” Trump said.
Stocks of Netflix Inc., Paramount Global, Warner Bros. Discovery Inc., and other media and entertainment companies glide as Wall Street and Hollywood try to distinguish what aspects of filmmaking qualify for such tariffs and why it should be targeted like other industries.
According to a 2023 Film Association report, the U.S. film and television industry exports were $22.6 billion and operated a $15.3 billion trade surplus. The report says the industry has a positive trade balance with every major market in the world.
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Trump ordered the Commerce Department and the U.S. Trade Representative to start the tariff process “immediately.”
“While no final decision on foreign film tariffs has been made, the administration is exploring all options to fulfill President Trump's instructions to protect our country's national and economic security while also giving Hollywood another positive review, White House spokesman Kush Desai said on Monday.”
The statement does not provide specific details on how import taxes are formulated and enforced, or under the authorization of the law that they will fall into depravity – if Trump decides to move forward.
The president's assertion that foreign films threaten national security suggests that the government can rely on Section 232 of the Trade Expansion Act, which provides the Ministry of Commerce with 270 days to investigate some of the so-called import hazards. At the end of the investigation, the president can impose tariffs. Trump has used that power to strike responsibility on automobiles and metals.
If Trump chooses to do so, the tariff movie will be complicated.
Many of Hollywood studios’ films involve global production, including shooting locations abroad and post-production work that can be done anywhere in the world. Other unresolved questions include whether the allegation applies to films that have been filmed but not yet released, or whether only new works are available.
Stephen follows writer, producer and storytelling consultant that Trump “ignited the fire under problems that the industry rarely faces head-on. Does that actually mean a move to take place in the United States?”
Many big-budget Hollywood movies were shot in part or most of the time outside the United States, attracted by tax benefits and the lower labor costs of everything from actors and crew to post-production. 2009's “Avatar” is one of the largest films in the United States, mainly filmed in New Zealand, while “Avengers: Ultimate” uses extensive international locations, including Scotland and the United Kingdom.
The newsletter pointed out that filmmaking has become one of the most global industries on the planet. All aspects of the process usually cross boundaries. “Although Trump’s proposal takes clear boundaries both abroad and at home, the reality of modern filmmaking is blurred.”
He said in a social media post that Trump seemed to have seized on incentives offered by other countries, which made the U.S. film industry “death very quickly.”
“Our film industry has been destroyed by other countries,” Trump told reporters on Monday. “I want to help the industry. But other countries have provided financing for them.”
He also accuses California Gov. Gavin Newsom, who he calls him “a very incompetent person” and “just allow it to be taken away, you know, Hollywood.”
In recent years, Hollywood has seen film and television productions in the United States fall 28% between 2021 and 2024, according to research firm Prodpro. After the pandemic, content production has recovered faster in places like Canada, Australia and England, allowing Americans to travel to so-called out-of-control production or “offshore outsourcing.”
To promote the industry in Los Angeles, actor Jon Voight and his manager Steven Paul have been pushing Trump to provide federal production incentives. These incentives will be available for sale in existing national incentives.
Voight, Paul and Paul’s deputy Scott Karol spent a weekend with Trump at the Mar-A-Lago Club, where they outlined plans to watch the Kentucky Derby. Trump posted his thoughts on Sunday – but instead of providing the carrot, he took out a stick.
Heeyon Kim, assistant professor of strategy at Cornell University, said the U.S. entertainment industry generates billions of dollars each year through the export of movies, TV shows and other intellectual property rights.
Kim said that in 2024, the international market accounts for more than 70% of Hollywood's total box office revenue, which could trigger revenge in other countries that “cause “billions of dollars in revenue losses that affect not only major studios, but also thousands of production, marketing and distribution jobs.”
It appears to be the initial floating service for the U.S. government floating service, but jurisdictions such as the EU have surfaced as much retaliation against tariffs on goods imported from the EU to the U.S., analysts from Madison and Wall wrote in a note. China has announced it will “mediumly reduce” the number of Hollywood movies allowed in the country.
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