Trump Announces 100% Tariff on Foreign-Made Movies, Shocking Hollywood

President Donald Trump announced Monday that he plans to impose a 100% tariff on all foreign-made movies, a move that could dramatically reshape Hollywood’s relationship with global filmmaking.

In a Truth Social post, Trump did not specify when or how the tariff would be enacted. If carried out, it would be the first time a tariff has been applied to a service rather than a tangible good.

Trump initially floated the idea back in May, claiming that tax incentives abroad have drawn American filmmakers away from the U.S. On Monday, he singled out California as being “particularly hard hit” by productions moving overseas, despite the state offering its own competitive tax credits.

Industry insiders reacted with confusion when the proposal first surfaced earlier this year, calling it both “shocking” and impractical. “On first blush, it’s shocking and would represent a virtually complete halt of production,” one insider told CNN at the time. “But in reality, he has no jurisdiction to do this and it’s too complex to enforce.”

Hollywood executives note that while many actors and directors prefer to film close to home, studios often find it cheaper to produce abroad due to labor costs, rebates, and other incentives. “It’s infinitely cheaper,” said Jay Sures, vice chairman of United Talent Agency.

Financial markets reacted quickly to Trump’s post. Shares of Netflix fell about 1% Monday morning, while other movie-related companies, including AMC and Disney, opened higher.

The announcement comes as the U.S. box office continues to lag behind pre-pandemic highs. Domestic grosses peaked at nearly $12 billion in 2018 before collapsing to just over $2 billion in 2020 during COVID shutdowns. While theaters have rebounded, the total number of releases remains about half of what it was in 2019, and grosses have not surpassed $9 billion since.

Trump is also preparing a broader set of tariffs. Starting Wednesday, his administration plans to impose a 100% tariff on branded drugs (with some exceptions), a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and vanities, and a 30% tariff on upholstered furniture. In a separate post, he also said he intends to place a “substantial” tariff on all imported furniture.

Credit: CNN Newsource

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