President Donald Trump announced sweeping plans to impose a 100 percent tariff on movies produced outside the United States, describing Hollywood’s decline as a matter of national security and pledging to revitalize domestic film production.
“The movie industry in America is dying a very fast death,” Trump wrote Sunday on his Truth Social platform. “This is a concerted effort by other nations and, therefore, a national security threat.”
The president’s announcement represents an expansion of his administration’s tariff agenda, which has already targeted goods from numerous countries including China. Trump previously implemented a universal 10 percent tariff on most imported goods and substantial “reciprocal” tariffs on dozens of nations, but this marks the first attempt to target the entertainment industry specifically.
Film production in Los Angeles has suffered a significant decline over the past decade. According to FilmLA, a non-profit tracking the region’s production, film and television production has fallen by nearly 40 percent in Hollywood’s home city. Recent wildfires have compounded the industry’s struggles, raising concerns that production crews may permanently relocate.
A recent ProdPro survey found California ranked only sixth among preferred filming locations, trailing Toronto, Britain, Vancouver, Central Europe and Australia – regions that offer substantial tax incentives to attract American productions.
In comments to reporters, Trump placed partial blame on California Governor Gavin Newsom, calling him “grossly incompetent” for allowing production to leave the state. “What they’ve done is other nations have been stealing the movies, the moviemaking capabilities from the United States,” he added.
The practical implementation of such tariffs remains unclear. Films represent intellectual property rather than physical goods, making them a type of service not currently subject to traditional tariffs. The administration has not provided details on how the policy would apply to movies partially produced abroad or those made for streaming services.
Some industry analysts have expressed skepticism about the tariffs’ potential effectiveness. “I think the most likely consequence is not that more productions will be done outside of America, or more productions would be done in America, but probably that just fewer productions will be made,” said Scott Roxborough, Europe bureau chief of the Hollywood Reporter.
The announcement comes as actor Jon Voight, described as one of Trump’s “special ambassadors” to Hollywood, has reportedly been developing a plan to help the entertainment industry. Industry representatives have long advocated for a federal tax incentive to keep production in the United States.
While Trump frames the film industry as struggling, 2025 has actually seen some improvement, with domestic box office revenues up 15.8 percent compared to 2024, though still 31 percent behind pre-pandemic 2019 levels.
Studio executives reportedly convened emergency calls following Trump’s announcement, seeking clarity on whether films already in production overseas would be exempt from the proposed tariffs. The policy could significantly impact major franchises that routinely shoot internationally, including the “Avatar,” “Avengers,” and “Mission: Impossible” series.
Commerce Secretary Howard Lutnick acknowledged the president’s directive with a brief post on social media platform X: “We’re on it.”
