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President Donald Trump said Monday that his administration will impose a 100% tariff on all movies produced outside the United States, a dramatic and unprecedented escalation of his broader trade agenda.
In a post on Truth Social, Trump declared that the new policy would apply to “any and all movies that are made outside of the United States,” though he did not specify when or how such a tariff would be implemented. If enacted, it would mark the first time a U.S. president has effectively imposed a tariff on a service rather than a physical product.
The announcement stunned Hollywood, reigniting confusion and alarm that first erupted in May when Trump initially floated the idea. At the time, the president argued that foreign governments were offering lucrative incentives that had lured filmmakers overseas, costing American jobs.
In his new post, Trump specifically pointed to California, saying the state “has been particularly hard hit” by film industry flight. However, California and other major production hubs have long offered competitive tax credits to attract and retain film and television projects.
Industry executives warned that the proposed tariff could have devastating effects if enforced. “On first blush, it’s shocking and would represent a virtually complete halt of production,” one senior studio official told CNN earlier this year. “But in reality, he has no jurisdiction to do this and it’s too complex to enforce.”
Jay Sures, vice chairman of United Talent Agency, said in May that while most actors and directors prefer to work in the United States, studios find it far cheaper to film abroad. “The fact is, it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper,” Sures said.
Market reaction to Trump’s latest announcement was mixed. Shares of Netflix (NFLX) opened down 1% Monday morning following his post, while movie-related companies such as AMC Entertainment (AMC) and The Walt Disney Company (DIS) opened higher.
The U.S. film industry has been struggling to regain its footing since the pandemic decimated theater attendance. Domestic box office revenues peaked at nearly $12 billion in 2018 but plummeted to just $2 billion in 2020, when theaters were largely shuttered. Although the industry has partially rebounded, the number of theatrical releases remains about half of pre-pandemic levels, and total U.S. box office earnings have yet to surpass $9 billion annually.
Trump’s movie tariff proposal is part of a sweeping trade agenda targeting a wide range of industries. As of Wednesday, his administration is expected to impose a 100% tariff on branded pharmaceuticals, a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and vanities, and a 30% tariff on upholstered furniture.
In a separate post Monday, Trump said he plans to levy a “substantial” tariff on all imported furniture, describing the move as part of his effort to “rebuild American manufacturing.”
If Trump proceeds, the film tariff could spark an international trade dispute and upend global entertainment production, which relies heavily on multinational collaboration and cross-border financing.
