US President Donald Trump has announced a 100 per cent tariff on all movies produced outside the United States, citing concerns over national security and foreign influence.
The directive, posted on Trump’s social media platform Truth Social on Sunday, tasks the Department of Commerce and the United States Trade Representative (USTR) with initiating the process of imposing the unprecedented tariff.
"The American movie industry is dying a very fast death," the former president wrote. "This is a concerted effort by other Nations and, therefore, a National Security threat... It is, in addition to everything else, messaging and propaganda!"
The proposed tariffs are intended to "level the playing field" and encourage studios to return to domestic production, Trump said, accusing foreign governments of luring US filmmakers abroad with lucrative incentives and tax breaks.
"We want movies made in America again!" Trump asserted, echoing his earlier rhetoric on bringing back manufacturing jobs to US soil.
The move represents a notable shift in Trump’s tariff policy, targeting not physical goods, but for the first time, cultural and creative services. If enacted, this would mark the first time US trade duties are extended to the entertainment industry, particularly film.
The announcement follows weeks after China, the world’s second-largest film market, slashed the number of American movies allowed in its cinemas. The decision in Beijing is widely seen as retaliation to Trump's renewed levies on Chinese imports.
Industry analysts, however, warn the measure could have unintended consequences. Major Hollywood studios such as Disney, Warner Bros, and Paramount, which have increasingly relied on international locations to cut production costs and benefit from favourable tax regimes, may face financial strain.
CNN, citing studio insiders, reported that the new tariffs could undermine efforts to revive the industry post-pandemic, particularly as studios continue to struggle with tightened budgets and slower box office recoveries.
Film industry labour unions and international partners have yet to issue official statements on the proposed policy. However, trade experts believe Trump’s move is likely to trigger legal challenges under World Trade Organization (WTO) norms, which generally prohibit unilateral tariffs on services without multilateral agreements.
With the 2024 presidential election looming and Trump's campaign seeking to appeal to domestic industries and conservative cultural values, the tariff announcement may also serve a political purpose, aiming to cast American cinema as both an economic engine and a symbol of national identity.
Whether the policy will be formally implemented, and how other nations and international studios respond, remains to be seen.
