WASHINGTON: US President Donald Trump on Sunday (May 4) announced a 100 per cent tariff on movies produced outside the country, saying the American movie industry was dying a “very fast death” due to the incentives that other countries were offering to lure filmmakers.
“This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda,” Trump said on Truth Social.
Trump said he was authorising the relevant government agencies, such as the Department of Commerce, to immediately begin the process of imposing a 100 per cent tariff on all films produced abroad that are then sent into the United States.
He added: “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Commerce Secretary Howard Lutnick said on X: “We’re on it.”
Neither Lutnick nor Trump provided any details on how the tariffs would be implemented.
It was unclear if the tariffs would apply to movies on streaming services as well as those shown in theatres, or if they would be calculated based on production costs or box office revenue. Hollywood executives were trying to sort out details on Sunday night. The Motion Picture Association, which represents the major studios, had no immediate comment.
In January, Trump appointed Hollywood veterans Jon Voight, Sylvester Stallone and Mel Gibson to bring Hollywood back “bigger, better and stronger than ever before.”
Movie and TV production has been exiting Hollywood for years, heading to locations with tax incentives that make filming cheaper.
Governments around the world have increased credits and cash rebates to attract productions and capture a greater share of the US$248 billion that Ampere Analysis predicts will be spent globally in 2025 to produce content.
All major media companies, including Walt Disney, Netflix and Universal Pictures, film overseas in countries such as Canada and Britain.
On Monday, leaders in Australia and New Zealand responded to Trump’s tariff announcement by saying they would advocate for their local industries. Some Marvel superhero movies have been filmed in Australia, while New Zealand was the backdrop for The Lord of the Rings films.
The British media and entertainment union Bectu called on the government to move swiftly to protect the country’s “vital” film industry.
“These tariffs, coming after COVID and the recent slowdown, could deal a knock-out blow to an industry that is only just recovering,” said Bectu head Philippa Childs.
She said they would also threaten tens of thousands of jobs of freelancers who make films in the UK.
Film and high-end TV production in the UK was worth 5.6 billion pounds (US$7.45 billion) in 2024, a 31 per cent increase over 2023, according to the British Film Institute.
The government’s Department for Culture, Media, and Sport (DCMS) did not immediately respond to a Reuters request for comment.
