WASHINGTON, May 5 — In a bold and controversial move, President Donald Trump announced on Sunday a sweeping 100% tariff on all foreign-made films entering the United States, claiming that Hollywood is facing a rapid decline due to aggressive international competition and government-backed incentives abroad.
Calling it a matter of national urgency, Trump declared on his Truth Social platform that the outflow of film production from American soil is “a coordinated strategy by foreign governments” and poses a “national security risk” through cultural influence and propaganda.
Trump didn’t hold back, adding: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
A Call to Rebuild American Cinema
According to Trump, the time has come to reassert American dominance in the entertainment world. He directed federal agencies — particularly the Department of Commerce — to begin the immediate rollout of the new tariff initiative. While the statement was sweeping, exact details about enforcement remain unclear.
There’s uncertainty about whether these tariffs will apply to digital streaming content as well as theatrical releases, or if they’ll be based on cost of production, international licensing, or box office revenue. The entertainment industry was left in a state of confusion Sunday night as studios and producers scrambled to interpret what this new policy would mean for their global operations.
Commerce Secretary Howard Lutnick, appointed earlier this year, responded with a succinct post on social media: “We’re on it.”
This announcement follows Trump’s earlier appointment of notable Hollywood figures — Jon Voight, Sylvester Stallone, and Mel Gibson — to a task force focused on revitalizing the U.S. film industry and bringing jobs and productions back to American soil.
Foreign Incentives Driving Hollywood Abroad
For years, U.S. film production has steadily moved overseas to take advantage of lucrative tax incentives, cash rebates, and cheaper operating costs. Countries like Canada, the UK, Australia, and several in Europe have built massive infrastructure around film production to court American studios.
This global race for content production has created a fierce battle over where blockbuster films and high-budget TV shows are made. Research from multiple industry groups shows that by 2023, nearly half of all big-budget film and television production by U.S. companies was taking place outside American borders.
Cities like Toronto, London, and Sydney have become new hubs for what was once traditionally shot in Los Angeles. The impact has been noticeable. FilmLA, a nonprofit tracking production activity in Los Angeles, reported a nearly 40% drop in local filming over the last decade.
Natural disasters, such as recent wildfires in Southern California, have also made some local neighborhoods unviable for production crews, leading camera operators, set designers, and other behind-the-scenes workers to consider moving elsewhere for work.
Recent industry reports suggest that California has fallen behind multiple countries when it comes to preferred filming destinations, leading many to urge state officials to enhance tax benefits to help regain its competitive edge.
Global Response and Economic Concerns
Trump’s announcement immediately drew international attention. Officials in Australia and New Zealand, both major destinations for Hollywood productions, stated that they would take steps to defend their domestic industries from any economic fallout.
Australia has served as the backdrop for several major Marvel blockbusters, while New Zealand gained worldwide recognition for hosting the iconic filming of the Lord of the Rings series. Both countries have invested heavily in infrastructure, training, and tax credits to become competitive production markets.
In the United Kingdom, industry professionals expressed concern over the impact such tariffs could have on jobs and local studios. A leading union representing media workers warned that these policies, arriving after pandemic slowdowns, could “cripple an industry that is only beginning to recover.”
Recent statistics show that the UK film and high-end TV sector generated over £5.6 billion in 2024 alone, up significantly from the previous year. Tens of thousands of workers rely on international collaborations with American studios, and this policy shift could disrupt those partnerships.
U.S. entertainment companies with global operations — such as Netflix (NFLX.O), Disney (DIS.N), Amazon (AMZN.O), and Warner Bros (WBD.O) — saw early signs of market unease as their stock prices dipped in Monday trading. Investors showed caution amid concerns over possible countermeasures and increased expenses in film production.
Industry Split Over Strategy
While some within Hollywood applauded the call to bring production home, others argued that trade tariffs could lead to unintended consequences. Industry veterans warned that forcing studios to produce domestically without matching the economic advantages of foreign incentives might drive up costs and slow content creation.
A former U.S. trade official weighed in, stating that the measure could backfire if other countries respond with restrictions on American content in their own markets. “We risk starting a trade war over entertainment,” he said. “In this fight, the risks for us could be much greater than the rewards.”
Producers and unions in California have urged Governor Gavin Newsom to step up support for local filming through expanded tax relief. They argue that rebuilding the state’s reputation as a top production destination will require more than tariffs — it needs infrastructure investment, flexible regulations, and long-term support.
Still, Trump remains committed to his position. He argues that Hollywood is more than just an industry — it’s a representation of American culture and values, and that control over its messaging should not be outsourced to foreign governments or economies.
As debates swirl across boardrooms and film sets, one thing is clear: Trump’s policy has reignited the conversation over where and how American stories are told — and who gets to tell them.