U.S. President Donald Trump said on Monday that he would impose 100% tariffs on all films made overseas and then send them to the U.S., repeat threaten Made in May, this will upend Hollywood’s global business model.
This step demonstrates Trump’s willingness to extend protectionist trade policies into the cultural industry, which makes studio uncertainty significantly involved cross-border co-production and international box office revenue.
“Our filmmaking business is stolen from the United States, other countries, just like stealing candy from babies,” Trump said in a post about his truth socialization.
However, it is unclear what legal authorities Trump will use to impose 100% tariffs on foreign-made films.
The White House did not respond immediately Reuters Request comment on how to impose tariffs.
Top American studios Warner Bros Discovery, Paramount Skydance and Netflix also did not immediately respond to requests for comment. Comcast declined to comment.
“There is too much uncertainty and this latest move raises more questions than the respondents,” said Paolo Pescatore, a PP Vision analyst.
“For now, as things get things going, the costs can increase, and this inevitably passes on to consumers,” he said.
The president first proposed the idea of a movie tariff in May, but provided few details that left entertainment executives unsure whether it would apply to a particular country or all imports.
After the announcement in May, the American Film Union and the Guild Alliance sent Trump a letter urging him to support tax benefits for domestic film production in a settlement plan drafted by Congress, aiming to help the United States return to film and television projects.
According to the Film Association, the U.S. film industry recorded a trade surplus of $15.3 billion in 2023, exporting to international markets at $22.6 billion.
From Australia to Canada
Studio executives told Reuters Earlier this year, given that modern films often use production, finance, post-products and visual effects, they were “troubled” by the way film tariffs were enforced.
Hollywood is increasingly relying on overseas production centers, such as Canada, the UK and Australia, where tax benefits attract large budget shots from films ranging from superhero blockbusters to streaming dramas.
Meanwhile, joint products with foreign studios are becoming increasingly common, especially in Asia and Europe where local partners provide financing, access to market and distribution networks.
Industry executives also warn that from visual effects artists to production staff, their work is often coordinated across multiple countries.
