President Donald Trump has announced plans to impose a 100 percent tariff on movies produced outside the United States, a move he says will protect the American film industry.
In a post on Truth Social, Trump claimed that film production “has been stolen” from America and vowed, “I will be imposing a 100% tariff on any movies that are made outside of the United States.”
Exactly how such a tariff would work is unclear. Unlike manufactured goods that enter through ports, movies today are primarily distributed as digital files globally. Industry observers also note the complications for U.S.-based productions that shoot abroad, such as the James Bond and Jason Bourne films, or Hollywood projects that split production between several countries. Trump first floated the idea in May but has not set a timeline for implementation.
Film trade analyst Jacob Jensen of the American Action Forum questioned the need for such a policy, writing in July that U.S. films already dominate the global market. “Unlike any other country’s film industry, U.S. movies are the most accessible, well-known, and best performing due to the numerous language options and worldwide reach provided by U.S.-based studios,” he noted.
The Motion Picture Association (MPAA) reports that American films generated $22.6 billion in exports in 2023, creating a $15.3 billion trade surplus. A recent study concluded that U.S. movies produced “a positive balance of trade in every major market in the world.”
Critics warn that tariffs could provoke retaliation. Barry Appleton, co-director of the Center for International Law at the New York Law Center, cautioned that foreign governments might respond with their own levies. “Brand America is way, way ahead,” he said. “What this policy does is actually cook the golden goose that’s laying the golden eggs.”
Trump has often used tariffs as leverage in broader trade disputes, applying them to goods ranging from trucks to pharmaceuticals. But taxing movies — an intellectual property product that blends physical and digital services — introduces a new set of challenges.
Ann Koppuzha, a lecturer at Santa Clara University’s Leavey School of Business, explained when Trump made his first threat in May: “Traditional tariffs apply to physical imports crossing borders, but film production primarily involves digital services.” She added that taxing such work would require Congressional approval.
Others point out the global nature of filmmaking. Georgetown professor Steven Schiffman cited Warner Bros.’ Harry Potter franchise, shot almost entirely in the U.K., as an example of how international production incentives are baked into Hollywood economics. “When you make these sorts of blanket rules, you’re missing some of the nuance of how production works,” Schiffman said.
Cornell University professor Heeyon Kim warned of steep economic fallout, noting that foreign markets account for more than 70 percent of Hollywood’s box office revenue. Retaliatory quotas or restrictions, she said, could cost “billions of dollars in lost earnings and thousands of jobs.”
The International Alliance of Theatrical Stage Employees acknowledged Trump’s concerns about global competition but suggested a different approach: federal tax credits to encourage more production in the U.S.
For now, Trump’s proposed movie tariffs remain theoretical. But industry experts agree on one point: they would represent uncharted territory for both Hollywood and international trade.
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