Trump takes his tariff war to the movies announcing 100% levies on
foreign-made films
[September 30, 2025]
By WYATTE GRANTHAM-PHILIPS and PAUL WISEMAN
President Donald Trump says he will slap a 100% tax on movies made
outside the United States — a vague directive aimed at protecting a
business that America already dominates.
Claiming that movie production “has been stolen’’ from Hollywood and the
U.S., Trump posted on his Truth Social platform that “I will be imposing
a 100% tariff on any and all movies that are made outside of the United
States.’’
It was unclear how these tariffs would operate, since movies and TV
shows can be transmitted digitally without going through ports. Also
unclear is what it would mean for U.S. movies filmed on foreign
locations — think James Bond and Jason Bourne — or what legal basis the
president would claim for imposing the tariffs.
The president had first issued the threat back in May. He has yet to
specify when the tariff might go into effect.
Movies are an odd battleground for a U.S. trade war. "Unlike any other
country’s film industry, U.S. movies are the most accessible,
well-known, and best performing due to the numerous language options and
worldwide reach provided by U.S.-based studios,'' trade analyst Jacob
Jensen of the center-right American Action Forum wrote in a July
commentary.
In movie theaters, American-produced movies overwhelmingly dominate the
domestic marketplace. Data from the Motion Picture Association also
shows that American films made $22.6 billion in exports and $15.3
billion in trade surplus in 2023 — with a recent report noting that
these films “generated a positive balance of trade in every major market
in the world” for the U.S.
Barry Appleton, co-director of the Center for International Law at the
New York Law Center, warned that other countries may retaliate with
levies on American movies or other services. In movies, “Brand America
is way, way ahead,’’ he said. “What this policy does is actually cook
the golden goose that’s laying the golden eggs.’’
Tariffs are Trump's go-to solution for America's economic problems, a
tool he likes to use to extract concessions from other countries.
Reversing decades of U.S. support for lower trade barriers, he's slapped
double-digit tariffs on imports from almost every country on earth. And
he's targeted specific products, including most recently
pharmaceuticals, heavy trucks, kitchen cabinets and bathroom vanities.
Unlike other sectors that have recently been targeted by tariffs, movies
go beyond physical goods, bringing larger intellectual property
ramifications into question.
Here’s what we know.
Why is Trump threatening this steep movie tariff?
Trump has cited national security concerns, a justification he’s
similarly used to impose import taxes on certain countries and a range
of sector-specific goods.
In May, Trump claimed that the American movie industry is “DYING to a
very fast death” as other countries offer “all sorts of incentives” to
draw filmmaking away from the U.S.
In recent years, U.S. film and television production has been hampered
between setbacks from the COVID-19 pandemic, the Hollywood guild strikes
of 2023 and the recent wildfires in the Los Angeles area. Incentive
programs have also long-influenced where movies are shot both abroad and
within the U.S., with more production leaving California to states like
Georgia and New Mexico — as well as countries like Canada.
At the same time, international markets make up a large chunk of
Hollywood's total box office revenue — accounting for over 70% last
year, according Heeyon Kim, an assistant professor of strategy at
Cornell University. She warned that tariffs and potential retaliation
from other countries impacting this industry could result in billions of
dollars in lost earnings and thousands of jobs.
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The Hollywood Sign is seen in Los Angeles, Thursday, Jan. 9, 2025.
(AP Photo/Damian Dovarganes, file)
 “To me, (this) makes just no sense,”
Kim previously told The Associated Press, adding that such tariffs
could “undermine otherwise a thriving part of the U.S. economy.”
The International Alliance of Theatrical Stage Employees, which
represents behind-the-scenes entertainment workers across the U.S.
and Canada, said in May that Trump had “correctly recognized” the
“urgent threat from international competition” that the American
film and television industry faces today. But the union said it
instead recommended the administration implement a federal
production tax incentive and other provisions to “level the playing
field” while not harming the industry overall.
How could a tax on foreign-made movies work?
That’s anyone’s guess.
“Traditional tariffs apply to physical imports crossing borders, but
film production primarily involves digital services — shooting,
editing and post-production work that happens electronically,” Ann
Koppuzha, a lawyer and business law lecturer at Santa Clara
University’s Leavey School of Business, explained when Trump first
made his May threat.
Koppuzha added that film production is more like an applied service
that can be taxed, not tariffed. But taxes require Congressional
approval, which could be a challenge even with a Republican
majority.
Making a movie is also an incredibly complex — and international —
process. It’s common for both large and small films to include
production in the U.S. and in other countries, or overseas
altogether. Steven Schiffman, a longtime industry veteran and
adjunct professor at Georgetown University, pointed to popular
titles filmed outside the U.S. — such as Warner Bros’ “Harry Potter”
series, which was almost entirely shot in the U.K.
U.S. studios shoot abroad because tax incentives can aid production
costs. But a blanket tariff across the board could discourage that
or limit options — hurting both Hollywood films and the global
industry that helps create them.
“When you make these sort of blanket rules, you’re missing some of
the nuance of how production works,” Schiffman said previously.
“Sometimes you just need to go to the location, because frankly it’s
way too expensive just to try to create in a soundstage”
Could movie tariffs have repercussions on other intellectual
property?
Overall, experts warn that the prospect of tariffing foreign-made
movies ventures into uncharted waters.
“There’s simply no precedent,” Koppuzha said in May. And while the
Trump administration could extend similar threats to other forms of
intellectual property, like music, “they’d encounter the same
practical hurdles.”
But if successful, some also warn of potential retaliation. Kim
pointed to “quotas” that some countries have had to help boost their
domestic films by ensuring they get a portion of theater screens,
for example.
Many have reduced or suspended such quotas over the years in the
name of open trade — but if the U.S. places a sweeping tariff on all
foreign-made films, these kinds of quotas could come back, “which
would hurt Hollywood film or any of the U.S.-made intellectual
property,” Kim said.
And while U.S. dominance in film means “there are fewer substitutes”
for retaliation, Schiffman noted that other forms of entertainment —
like game development — could see related impacts down the road.
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