5 hours Ago
"The American movie industry is dying fast," Trump wrote. "Other nations are luring our studios and filmmakers with huge incentives. That's why I'm calling for a full 100% tariff on foreign-made films. We want to see movies made in America again!"
However, the practical side of this proposal remains uncertain. Films are considered intellectual property or services rather than physical goods, which usually fall under tariff laws. While traditional tariffs don't apply to services, some non-tariff trade barriers—like subsidies or regulations—can still affect competition.
Many cities outside the U.S., including Toronto and Dublin, have become hotspots for film and TV productions due to generous tax incentives. California Governor Gavin Newsom recently proposed a large-scale tax credit to bring these productions back to Hollywood.
Trump emphasized that this trend isn't just economic but a threat to national security, calling it a "coordinated effort by other nations" to harm U.S. culture. He added, "This is about more than money—it's about messaging and propaganda!"
Although the film industry isn't exactly dying, there has been a noticeable shift. Theater ticket sales in the U.S. dropped significantly after the COVID-19 pandemic, with many viewers turning to streaming services instead. In 2018, the U.S. box office hit nearly $12 billion. By 2020, during the height of the pandemic, that number fell to just over $2 billion. While theaters have since reopened, the total box office hasn't crossed $9 billion, and film releases are still about half of what they were in 2019.
Streaming platforms—many of which are owned by major Hollywood studios—have only recently started to turn profits. Disney+ and Max, for instance, have just begun to make money. Netflix has long been profitable, but several other platforms are still operating at a loss.
Despite Trump's efforts to protect American interests with tariffs on goods like steel, aluminum, and auto parts—ranging from 25% to 145%—services like film production have not previously been targeted. This new move could be the first time a service sector faces direct trade penalties under Trump's economic policies.
Trump's son, Donald Trump Jr., also appeared to support the idea. After his father's second-term executive order targeting migrants at Guantanamo Bay, Trump Jr. posted on X: "Now this is a great idea. Maybe we should also reopen Alcatraz?!"
As of now, it's unclear how this proposal would be implemented or whether it will be legally feasible.
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