In a dramatic escalation of his trade policy, U.S. President Donald Trump announced Sunday a 100% tariff on all foreign-made films, claiming that aggressive international tax incentives have hollowed out America’s movie industry and posed a threat to national security.

In a post on his Truth Social platform, Trump said, “The American movie industry is dying a very fast death. This is a concerted effort by other Nations and, therefore, a National Security threat. It is, in addition to everything else, messaging and propaganda.”

Trump authorized the Department of Commerce and other agencies to begin the immediate implementation of the new tariff policy, stating, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”

Unclear Implementation, Industry Reeling

Accrding to Reuters, Commerce Secretary Howard Lutnick responded on X with a brief statement: “We’re on it.” However, neither Lutnick nor Trump provided details about the logistics of the new tariff. It remains unclear whether the levy will apply to streaming content, theatrical releases, or direct-to-video films, or how the tariff would be calculated — by production costs, box office revenues, or some other metric.

Executives at major studios were scrambling to understand the scope of the policy Sunday night. The Motion Picture Association, which represents studios such as Walt Disney, Netflix, and Universal Pictures, declined immediate comment.

Industry Already Under Pressure

Trump’s move follows years of declining production in Hollywood, with filmmakers increasingly choosing to shoot overseas to take advantage of generous tax incentives. A 2023 study by ProdPro showed that roughly half of all big-budget film and TV productions ($40 million or more) were filmed outside the U.S., with Canada, Britain, Central Europe, and Australia being top destinations.

A FilmLA report indicated that film and TV production in Los Angeles has fallen nearly 40% over the last decade, a trend worsened by the wildfires of January 2025, which drove many workers out of the city.

In January, Trump appointed Hollywood veterans Jon Voight, Sylvester Stallone, and Mel Gibson to a task force aimed at “bringing Hollywood back bigger, better, and stronger than ever before.” The 100% tariff appears to be part of that broader campaign.

Trade Concerns and Global Fallout

The policy has sparked immediate concerns among trade experts. William Reinsch, former senior Commerce official and now a senior fellow at the Center for Strategic and International Studies, warned that retaliation from other countries could devastate the U.S. entertainment sector.

“The retaliation will kill our industry,” Reinsch said. “We have a lot more to lose than to gain. It would be hard to justify this on national security grounds.”

The global content production market is expected to reach $248 billion in 2025, according to Ampere Analysis. Major American studios — including Disney, Netflix, and Universal — already rely heavily on international markets both for production and distribution.

Trump’s tariff announcement continues his administration’s pattern of aggressive trade actions, which have rattled global markets and fueled recession fears.