President Donald Trump announced a plan to impose a 100% tariff on foreign-made films imported into the United States, citing concerns that international financial incentives are luring U.S. filmmakers and studios away. Trump described this trend as a national security threat and referred to foreign films as “messaging and propaganda.” He directed the Department of Commerce and the U.S. Trade Representative to initiate the tariff process.
During a press conference, Trump criticized other nations for “stealing” American film production capabilities, pointing specifically to a decline in Hollywood attributed to California Governor Gavin Newsom. Trump insisted that if movies are not produced in the U.S., harsh tariffs should be applied to those that enter the country. Despite the economic challenges facing the American film industry, including labor strikes and impacts from the COVID-19 pandemic, there was a noted 18.8% increase in feature film production last year, though it remains below the five-year average.
FilmLA’s report highlighted a struggle with studio occupancy due to decreased production in Los Angeles, as other regions, such as the U.K. and Canada, have expanded their production capacities. Meanwhile, Hollywood actors Jon Voight, Mel Gibson, and Sylvester Stallone were appointed as special ambassadors by Trump to restore business in the industry.
In response to Trump’s announcement, other trade associations and film distributors were not immediately available for comment. Notably, China had recently imposed its own tariffs on Hollywood films; however, the financial impact on U.S. cinema is expected to be minimal due to declining box office returns from the Chinese market.
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