Creative CommonsDonald Trump has extended his tariff wars to the movie industry by announcing plans to introduce 100% tariff on films made in “foreign lands” – here’s what that could mean for Hollywood.
International movies play a major role in the global success of cinema. From Parasite and Saltburn to Talk to Me and Godzilla Minus One, overseas titles drive diversity as well as billions in box office revenue.
Though a majority of the highest-grossing movies of all time are US productions, there are a number of overseas flicks making the cut, from the Harry Potter film series to China’s 2025 global sensation, Ne Zha 2.
Hollywood doesn’t operate in a vacuum – it’s part of a global economy. These proposed tariffs come at a time when streaming services and studios are already balancing tight profit margins and increasing production costs, meaning foreign-made films could shift an already fragile balance.
What are Donald Trump’s movie tariffs?
CJ EntertainmentA tariff is essentially a tax imposed by a government on imported goods. In this case, Trump is proposing a 100% tariff on any new movie produced outside the US, meaning any studio or distributor wanting to release a foreign-made film in American theaters would have to pay double the cost at the border.
For instance, if a French film costs $5 million to import and distribute in the US, that cost would jump to $10 million under a 100% tariff. This would make many international films financially unviable for US distribution, reducing the diversity of titles available to American audiences – and potentially cutting off a major revenue stream for non-American filmmakers.
It could also have unintended consequences for Hollywood itself. Many US productions are shot overseas to save on costs or benefit from tax breaks. If those films are technically considered international, they too could be hit with tariffs, making it significantly more expensive to produce and release.
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Taking to Truth Social on Sunday, May 4, 2025, the US president said: “The movie industry in America is DYING a very fast death. Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States.
“Hollywood, and many other areas within the USA, are being devastated. This is a concerted effort by other nations and, therefore, a national security threat. It is, in addition to everything else, messaging and propaganda!
“Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% tariff on any and all movies coming into our country that are produced in foreign lands.”
He finished by saying, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
Uncertainty ahead after Truth Social announcement
Creative CommonsTrump’s recent announcement has elicited skepticism from industry experts, who question the feasibility and potential consequences of such a measure. Additionally, it’s unclear if the tariffs would impact US movies made partly or entirely overseas, and whether they would apply to streamers or just theatrical releases.
Screen Producers Australia shared a statement in response to the news, with CEO Matthew Deaner saying, “At this stage, it is unclear what this announcement means in practice or how it will be applied and implemented.
“There are many unknowns for our industry, but until we know more, there’s no doubt it will send shockwaves worldwide. For the Australian industry, it reinforces the need for the government to focus immediately and swiftly on building a resilient local industry that can withstand global shocks like this.
“As we get set for our annual Screen Forever conference, set to start tomorrow, we’re certain today’s announcement will be the catalyst for many, many conversations between local and international industry executives and screen professionals.
“SPA will continue to monitor developments and await the Executive Order, which should provide further information on this.”
In the US, Bob Salladay – senior advisor for communications for California Governor Gavin Newsom – told Deadline, “We believe he has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law.”
In case you missed the news, California became the first state to file a lawsuit challenging Trump’s levies in April 2025, saying it had been “disproportionately affected” by the tariffs.
It’s for this reason Deadline suggested that the latest statement from Newsom’s office could be “setting the stage for another lawsuit from the Golden State against the MAGA administration and its chaos-inducing tariffs” – although, for now, it’s a waiting game.
Until an Executive Order is officially issued and its details are clarified, the future of these proposed tariffs remains uncertain. Industry professionals and governments alike are on edge, awaiting further developments that could shape the global film landscape for years to come.
In the meantime, check out the new movies coming to streaming this month, the best movies of 2025 so far, and the best movies of all time.