Topline
President Donald Trump said he has ordered his administration’s trade officials to impose a 100% tariff on all films produced abroad—alleging Hollywood studios were moving productions out of the U.S. to benefit from financial incentives offered by some countries.
Trump has ordered that foreign produced films should be hit with a 100% tariff.
Key Facts
In a post on his Truth Social platform, the president claimed the “Movie Industry in America is DYING a very fast death,” as other countries were offering “all sorts of incentives” to draw “our filmmakers and studios away from the United States.”
Trump claimed this purported exodus was leaving Hollywood and “many other areas within the U.S.A…devastated.”
The president also claimed, without evidence, that this was a “concerted effort” by foreign countries to bring their “messaging and propaganda” into the U.S. and therefore a “National Security threat.”
Trump said he has authorized the Commerce Department and the U.S. 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.”
Trump ended his post saying, “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
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How Has The Tariff Announcement Impacted Major Film Studios’ Stocks?
Shares of several major Hollywood giants slumped in premarket trading early on Monday. Shares of streaming giant Netflix, which produces its content all around the world, were among the worst hit, as they dropped nearly 3.4% to $1,117 in early trading. Warner Bros. Discovery’s shares fell to $8.29, down 2.93% from Friday’s close, while Disney’s shares dropped 1.74% to $90.88. Shares of Comcast, which owns Universal, fell by 1.19% to $34.05.
What Else Did Trump Say About Tariffs On Films Made Abroad?
Trump addressed the issue after returning to the White House from his Mar-a-Lago resort. Speaking to reporters, Trump took aim at California Gov. Gavin Newsom, saying: “I’ve done some very strong research over the past week, and we’re making very few movies now. Hollywood is being destroyed. Now, you have a grossly incompetent governor that allowed that to happen, so I’m not just blaming other nations, but other nations have stolen our movie industry.” Trump accused other countries of stealing America’s “moviemaking capabilities” and said their financial support for Hollywood films was “sort of a threat to our country in a sense.”
What To Watch For
It is unclear how the Trump administration plans to implement such a tariff on films shot abroad and nearly all major tentpole features of the year could be impacted. The year’s top-grossing film so far, “A Minecraft Movie”, was shot in New Zealand and the second highest box office earner, “Captain America: Brave New World”, was shot in multiple locations across the world, including Washington D.C., Atlanta, Mexico, Jordan and Japan. It is unclear how tariffs will be determined for such a multi-location film. Several other upcoming summer blockbusters like “Mission: Impossible – The Final Reckoning” and the John Wick spin-off “Ballerina” have been shot abroad. In the case of movies like Mission: Impossible and Captain America, key plot elements are set in certain foreign locations, so financial incentives may not be the only reason these films are being shot abroad.
Chief Critic
“We believe he [Trump] has no authority to impose tariffs under the International Economic Emergency Powers Act, since tariffs are not listed as a remedy under that law,” Newsom’s office told Deadline.
