Former President Donald Trump has announced plans to impose 100% tariffs on movies made in foreign countries, escalating trade disputes across the globe. Trump stated he is authorizing the U.S. department of Commerce and the Trade Representative to initiate the levy,asserting that America’s movie industry is rapidly declining.

The Rationale: National Security and Propaganda

Trump attributes the decline to a concerted effort by other countries offering incentives to attract filmmakers and studios. He characterized this as a National Security threat. In a post on his Truth Social platform, Trump elaborated:

It is indeed, in addition to everything else, messaging and propaganda! WE WANT MOVIES MADE IN AMERICA, AGAIN!

Donald Trump, Truth Social

Governance Response and Unclear Details

U.S. Commerce Secretary Howard Lutnick responded to the announcement,stating,We’re on it. However, the specifics of the proposed tariffs remain unclear. It is uncertain whether the tariffs would apply to American production companies filming abroad. several recent major movies produced by U.S. studios, including “Deadpool & Wolverine,” “Wicked,” and “Gladiator II,” were filmed outside the United States.

Additionally, it is indeed unclear if the tariffs would apply to films on streaming services like Netflix, and also those shown in cinemas, or how they would be calculated.

International Reactions

The governments of Australia and New Zealand have voiced support for thier respective film industries. Australia’s Home Affairs Minister Tony Burke stated:

Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry.

Tony Burke,Australia’s Home Affairs Minister

New zealand’s Prime Minister Christopher Luxon said his government is awaiting further details of the proposed tariffs,adding:

But we’ll be obviously a great advocate,great champion of that sector and that industry.

christopher Luxon, New Zealand’s Prime Minister

Broader Trade Context

Since returning to the White House in January, Trump has imposed tariffs on countries around the world, arguing they will boost U.S. manufacturers and protect jobs. However, critics argue that these tariffs have thrown the global economy into chaos and are expected to raise prices on goods worldwide.

Hollywood Ambassadors and Industry Data

Ahead of his inauguration, Trump appointed film stars Jon Voight, Mel Gibson, and Sylvester Stallone as special ambassadors tasked with promoting business opportunities in hollywood. At the time, Trump wrote:

They will serve as Special Envoys to me for the purpose of bringing Hollywood, which has lost much business over the last four years to Foreign Countries, BACK—BIGGER, BETTER, AND STRONGER THAN EVER BEFORE!

Donald Trump

Despite these efforts, the U.S. remains a major film production hub globally. According to movie industry research firm ProdPro, the U.S. saw $14.54 billion in production spending last year, even though this was down 26% from 2022. Countries like Australia, New Zealand, Canada, and the UK have attracted increased spending over the same period.

impact of Previous Trade Policies

The U.S. movie industry has already been impacted by the fallout from Trump’s trade policies. In April, China reduced its quota of American films allowed into the country. The China Film Administration stated:

The wrong action of the US government to abuse tariffs on China will inevitably further reduce the domestic audience’s favourability towards American films. We will follow the market rules, respect the audience’s choice, and moderately reduce the number of American films imported.

China Film Administration

Trump has imposed import taxes of up to 145% on goods from China, with potential levies reaching 245% on some goods. Beijing has retaliated with a 125% import duty on goods from the U.S.

Trade Negotiations and Future Prospects

Trump indicated he might be willing to lower tariffs on China, stating:

At some point, I’m going to lower them, because otherwise, you could never do business with them, and they want to do business very much.

Donald Trump, NBC’s Meet the Press

He also suggested he may grant another extension to a deadline for China-based ByteDance to sell the U.S. operations of tiktok, despite ongoing trade tensions.