Hollywood Alarmed
Photo credit: Security Pacific National Bank Collection/Los Angeles Public Library
In his latest volley of tariff threats, Trump announced on Truth Social that he will be imposing a 100% tariff on all movies made outside of the US, leaving film executives to wonder what this means for a modern film industry that relies on overseas collaboration
In his post to Truth Social on Monday, President Trump doubled down on a statement he made back in May, declaring his intention to impose a 100% tariff on all foreign-made movies. This initial announcement prompted a coalition of major film unions and guilds, representing actors, writers, crew members, and other industry workers, to send the president a letter urging him to rethink the idea. Instead of focusing on tariffs (which could cause trade problems and limit foreign films), they asked him to support tax incentives for domestic film production.
However, today he reaffirmed his plans for foreign movie tariffs, a measure that, if enacted, would mark the first time a Trump tariff targeted a service rather than a physical good. But it remains unclear how such a policy would even work.
Modern film production is rarely confined to one country; financing, post-production, visual effects, and shooting locations are often spread across multiple continents. Hollywood has increasingly relied on production centers in Canada, the U.K., and Australia, where generous tax breaks have attracted big-budget blockbusters and hit streaming shows. Industry leaders warn that a broad tariff could upend that system, potentially disrupting thousands of jobs held by U.S. workers on overseas shoots, from VFX artists to production crews.
Trump also used his Truth Social post to lob a familiar insult at California Governor Gavin Newsom, calling him “weak and incompetent.” The jab comes amid a noticeable escalation in their feud, with Newsom in recent weeks seeming to mimic Trump’s combative posting style online.
The broader context for Trump’s latest threat is an industry already under strain. On-location production in Hollywood has declined by more than 30% over the past five years, and while American actors and directors may prefer to work close to home, it is cheaper for studios to fly cast and crew abroad, cover hotels, and take advantage of lower labor costs and tax rebates overseas.
Recent box office trends reveal the stakes, with revenue peaking at just under $12 billion in 2018 before collapsing to just over $2 billion in 2020 during the pandemic shutdowns. Theaters have since rebounded, but the number of releases is still about half of what it was in 2019, and domestic box office revenue has yet to surpass $9 billion again.
The U.S. film industry remains a powerhouse abroad, posting a $15.3 billion trade surplus in 2023, supported by $22.6 billion in exports, according to the Motion Picture Association. A tariff-heavy approach, industry insiders warn, could jeopardize that success and reshape how, and where, American movies are made.
Post Attribution: Evelyn Lamond, Los Angeles Magazine, 2025-09-29
