Trump’s 100% Tariffs on Foreign Movies: Hollywood in Turmoil

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There’s quite a stir going on right now in Hollywood, as President Donald Trump has proposed implementing 100% taxes on films made outside of the United States.

If implemented, it would cover a number of films being produced at present, including “Avengers: Doomsday” and “Secret Wars,” which Disney is producing in the United Kingdom. Additionally, “Supergirl” by James Gunn is being filmed there as well. Previously, “Voltron” was shot in Australia, while James Cameron filmed the “Avatar” movies in New Zealand.

Trump’s tariffs may affect the television industry since numerous shows are produced outside the U.S. Interestingly, some of these productions, like “The Boys” and “Reacher,” which are produced by Amazon and showrunner Eric Kripke, a vocal critic of Trump, are filmed in Toronto, Canada, as well as Vancouver. Similarly, “Rings of Power” is filmed in New Zealand. HBO’s “The Last of Us” is also filmed in Canada, while Netflix, the leading streamer, produces much of its content abroad and even operates foreign studios. For instance, “Squid Games” is made in South Korea, “Wednesday” is produced in Romania, “One Piece” in South Africa, and so on.

What did Trump say?

Trump posted Sunday on Truth Social:

As a passionate cinephile, I’m deeply concerned about the swift decline of the American film industry. Countries worldwide are enticing our filmmakers and studios with attractive incentives, draining resources from our own soil. This is not just an economic issue; it’s a matter of national security and cultural identity. It’s a strategic move by other nations, a form of covert messaging and propaganda. To protect and revitalize our film industry, I’m urging the Department of Commerce and the United States Trade Representative to promptly initiate a 100% tariff on any foreign-produced films entering our country. Let’s bring movie production back to America!

How Would Trump’s Movie Tariffs Actually Work?

It’s not clear yet if the tariffs will affect all productions that film even a little bit overseas, or just those produced entirely outside of the U.S.

Doomsday while filming it in the UK, is there a tariff that would increase the total expense to $600 million?

Or would the tariffs be on the cost of ticket prices? Or streaming subscriptions?

It is indeed less expensive for film studios to produce high-budget movies outside of California, including travel, accommodation, meals, and production costs, compared to filming domestically. This aligns with Trump’s argument that the situation needs adjustment, as foreign countries provide substantial incentives to attract Hollywood productions abroad. If we manage to entice studios back to the U.S., it would undoubtedly result in more employment opportunities for American workers on these projects.

California Governor Gavin Newsom: Trump has no authority

Following Trump’s declaration, the shares of movie studios experienced a slight dip on Monday. In response to this news, California Governor Gavin Newsom stated that Trump lacks the power to instate a 100% tariff on movies.

Bob Salladay, a senior advisor for communications in Newsom’s team, stated that they think the president lacks the power to implement tariffs under the International Economic Emergency Powers Act, as tariffs aren’t included as a possible solution in that law. This ambiguous threat against foreign productions and their incentives from the president could potentially lead to another lawsuit from California against the MAGA administration, given its unpredictable tariffs. The Governor’s team’s initial reaction is expected to solidify more as more information emerges about Trump’s true intentions regarding these tariffs.

In addition to other industries, the Trump-imposed tariffs are influencing the sales of action figures and toys. However, at present, comics remain exempt from these tariffs.

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2025-05-05 19:01