Trump announces 100% tariff on foreign-made movies
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President Donald Trump said in a Truth Social post on Monday he will be imposing a 100% tariff “on any and all movies including Bollywood that are made outside of the United States.”
Trump did not specify when or how the tariff could be enacted.
If Trump follows through with his threat, it would mark the first time he’s essentially imposed a tariff on a service rather than a raw good.
The president initially threatened a 100% tariff on foreign-produced movies in May, arguing that other countries offer tax incentives that have drawn filmmakers abroad. In his post on Monday, he singled out California, saying the state “has been particularly hard hit!”
The state, meanwhile, has proposed and put in effect many tax incentives, as have other American cities.
Hollywood was completely caught off guard when Trump first previewed the tariff in May. “On first blush, it’s shocking and would represent a virtually complete halt of production,” one industry insider told CNN at the time. “But in reality, he has no jurisdiction to do this and it’s too complex to enforce.”
American actors and directors generally prefer to work close to home. But “the fact is, it’s cheaper for Hollywood studios to pay for everyone to get on planes, pay for hotels, because the cost of labor, lack of rebates and the ability to make things overseas is infinitely cheaper,” Jay Sures, vice chairman of United Talent Agency, told CNN in May.
Share of Netflix (NFLX) opened down 1% Monday morning following Trump’s post, while other movie-related companies, including AMC (AMC) and The Walt Disney Company (DIS), opened higher.
In 2023 and 2024, there have been strikes by the Writers Guild and the labour unions that also led to massive losses. The estimated loss in 2023 alone was $5 billion. And reports say that the jobs lost because of the strike are yet to be recovered.
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