President Donald Trump announced Sunday that the U.S. will impose a 100% tariff on all films produced abroad, declaring Hollywood is “dying a very fast death” due to foreign tax incentives that lure productions away from American soil.
“This is a concerted effort by other nations and, therefore, a national security threat,” Trump posted on Truth Social. “It is, in addition to everything else, messaging and propaganda. WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Commerce Secretary Howard Lutnick confirmed on X: “We’re on it.” However, neither Trump nor Lutnick provided details on how or when the tariffs would be implemented. It’s unclear whether the tariff would apply to theatrical releases, streaming content, or how it would be calculated.
Industry leaders scrambled Sunday to understand the implications. The Motion Picture Association declined immediate comment.
Trump’s announcement is the latest in a series of protectionist trade moves. In January, he appointed Jon Voight, Sylvester Stallone, and Mel Gibson to spearhead an initiative to “bring Hollywood back bigger, better, and stronger than ever before.”
Newsom Fires Back: “No Authority”
According to Deadline, California Governor Gavin Newsom wasted no time pushing back. “Trump has no authority to impose 100% tariffs on foreign-made movies,” the governor’s office told Deadline. Newsom, who is currently backing a bill to increase California’s film and TV tax incentives to $750 million annually, is now positioned for a high-profile showdown with the president over the future of Hollywood.
While Newsom’s team declined to comment Sunday night, insiders say they are monitoring the situation and awaiting specifics. Trump, meanwhile, attacked the governor during public remarks on the White House lawn, calling him a “grossly incompetent governor” who allowed Hollywood to be “stolen.”
Studios Caught in the Crossfire
The announcement comes at a fragile moment for the entertainment industry, which has been slow to recover from COVID-era shutdowns, strikes, and production migration.
All major studios—including Disney, Netflix, Amazon, Universal, and Warner Bros.—now shoot significant portions of their content overseas to benefit from aggressive tax incentives. According to Ampere Analysis, $248 billion is projected to be spent globally on content production in 2025.
Industry experts warn that rather than boosting domestic output, the tariff could backfire. “The most likely outcome isn’t more American productions—it’s fewer productions overall,” said Hollywood Reporter’s Europe bureau chief, Scott Roxborough.
Leaders in Australia and New Zealand pledged support for their film industries. Bectu, a major UK media union, urged the British government to act fast to defend its $7.45 billion production sector.
“After COVID and the recent slowdown, these tariffs could be a knock-out blow,” said Bectu head Philippa Childs, warning of job losses for tens of thousands of freelancers.
Film and TV production in Los Angeles has dropped nearly 40% over the past decade, according to FilmLA. California now ranks behind Toronto, the UK, and Australia as a preferred filming location, a ProdPro survey found.
Critics warned of retaliation from international trade partners. “The retaliation will kill our industry,” said former Commerce official William Reinsch. “We have a lot more to lose than to gain.”
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